DOGE whales attempt to revive Dogecoin price as retail investors retreat after a 25% crash

Source Fxstreet
  • Dogecoin price has noted a near 25% drawdown in the past month, with the meme coin trading at $0.077 at the moment.
  • DOGE retail investors have been pulling back, too, with the average active addresses falling by 36.8%.
  • Whale addresses known to influence the price action have begun accumulating, adding $10 million in DOGE in two weeks.

Dogecoin price has emerged as one of the most disappointing crypto assets over the past month, noting consistent declines. The lack of growth has been such that even retail investors have taken a step back from participating in conducting transactions. Thus, the burden now falls on whales who are attempting to initiate a comeback for the meme coin.

Dogecoin price decline extends

Dogecoin price, trading at $0.077 at the time of writing, has nearly fallen through the support of the 200-day Exponential Moving Average (EMA) after having already lost the 50 and 100-day EMA. The drawdown that began towards the start of December has resulted in DOGE falling by nearly 25% in a month.

The price indicators Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) both failed to exhibit bullishness after bearish cues flipped the potential over the past couple of days.

This suggests that the decline could continue, and the Dogecoin price might end up falling through the support at $0.074 to tag the critical support line at $0.070.

DOGE/USD 1-day chart

DOGE/USD 1-day chart

However, if the whales manage to switch the cues from bearish to bullish with their efforts, DOGE could initiate a recovery rally to retrace its steps to $0.080. Reclaiming this price point would enable a push beyond the barrier of $0.084, invalidating the bearish thesis.

Whales attempt to revive DOGE

After the dismaying decline noted in the past month, Dogecoin investors have seemingly lost hope of a recovery. This sentiment is visible in their recent actions, i.e., lack of presence and participation.

The active addresses on the chain have fallen by 36.8% from an average of 217,000 addresses to 137,000. Their hesitance regarding participation stems from the possibility of observing losses as DOGE is not reacting akin to the rest of the crypto market.

Dogecoin active addresses

Dogecoin active addresses

Thus, whales are taking up the charge by attempting to push the price up by accumulating as much DOGE as they can. The addresses holding between 1 million and 10 million DOGE have added more than 140 million DOGE worth $10.7 million in the span of merely two weeks, bringing their total holdings to 10.1 billion DOGE.

Dogecoin whale holdings

Dogecoin whale holdings

Since whale and large wallet holders command most of the circulating supply of DOGE at the moment, they happen to have the best shot at triggering a recovery as in the past, too, their accumulation has resulted in rallies, and selling has led to corrections in price.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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