Dogecoin (DOGE) continues to extend its ongoing downtrend, with the current outlook signaling a shift from enthusiasm to cautiousness. According to data reported today by market analyst Ali Martinize, whales have dumped over 1 billion Dogecoin over the past week, an indicator of bearishness in the meme coin market. DOGE erased 19.2% the past week to currently trade at $0.16513 as large investors, commonly recognized as whales, have sold more than 1 billion tokens over the past seven days.
Supply Distribution Chart Signal Whales’ Cautiousness
On-chain data shared by Ali shows that DOGE whales have recently engaged in a massive selling activity, a key catalyst for the meme asset’s downturn. The analyst shared a supply distribution technical indicator reported by the blockchain analytics company, Santiment.
As per the on-chain metrics illustrated above, wallets belonging to whales – traders holding between 10 million and 100 million Dogecoin – have sold over 1 billion DOGE tokens over the past week. The heavy sales sparked a significant technical downtrend recently.
Whales are always known for their influence in the crypto market as their large transactions often cause substantial price swings, affecting market sentiment and short/long-term impacts.
Based on the DOGE’s supply distribution chart, Dogecoin has dropped below the crucial $0.17 zone as large investors remain cautious and therefore engage in profit-taking. The drop is part of the wider corrections being noticed in the larger cryptocurrency market. Last week, the Federal Reserve announced a 25-bps interest rate cut, but the Fed’s chairman’s restrained tone weakened risk appetite after he indicated that December’s rate reduction isn’t guaranteed.
Buy Interest Declines Amid Macro Pressures Persist
According to metrics from CoinGecko, prominent digital assets, including BTC and ETH are currently trading at $103,681 and $3,491 down 9.38% and 15.12% over the past week, over the past week. Several tokens (like SOL, DOGE, and many others) are also experiencing a downturn. Metrics from Coinglass show that Dogecoin dropped 19.2%, widening the week’s downtrend as traders closed out their leveraged positions. RSI, which currently stands at 31.83, indicates the market remains oversold and derivative funding turned drastically negative across exchanges, including OKX and Binance. This confirms the continuation of the descending channel structure that began in mid-October. However, the trend is not structurally destructive as it is driven by profit-taking activity after the recent September-October highs.
