Dogecoin, the popular meme-based digital currency, faces a period of correction following a recent price rally. Today’s downturn in Dogecoin’s price, coupled with a massive selloff of 140 million DOGE tokens by a single whale, has raised concerns among investors and traders worldwide about the future trajectory of the cryptocurrency.
Blockchain analysis provided by Whale Alert revealed the transfer of nearly 140 million DOGE tokens, valued at $30.22 million, to Coinbase within the past 24 hours. This significant selloff has contributed to an increase in DOGE supply on exchanges, aligning with the prevailing bearish sentiment observed in Dogecoin’s market performance, as indicated by CoinMarketCap’s data.
While today’s price correction and the notable whale dump have cast a bearish shadow over Dogecoin, the cryptocurrency’s broader charts suggest a more nuanced picture. Despite the recent downturn, Dogecoin’s charts depict signs of sustained upward momentum, characterized by a U-shaped recovery pattern, leading to speculation among market participants about the token’s future trajectory.
As of the latest data, Dogecoin’s price has experienced a 1.62% decline in the past 24 hours, currently hovering at $0.2125. The cryptocurrency’s price movement over the past day has attracted significant attention from investors, with derivatives data indicating a drop in open interest and trading volume, signaling a downtrend in the market.
However, analysis from CoinGape Media highlights a crucial development in Dogecoin’s recent price action. Despite the correction, Dogecoin recently broke through the resistance level of $0.206, reaching a 28-month high of $0.2288, sparking optimism among investors.
While the current correction may prompt a retest of the breached resistance level, there is potential for further upside if Dogecoin maintains its upward momentum, with price targets of $0.27 and $0.3 being considered by market participants.
Overall, Dogecoin’s recent price correction and the accompanying whale selloff have led to uncertainty in the market, with investors closely monitoring the cryptocurrency’s price movements and on-chain dynamics for clues about its future direction.
