Dogecoin Slips To $0.2182 As Whale Dumps 170M, Analysts And Traders Expect Rise

Dogecoin (CRYPTO: DOGE) is trading at $0.2182, down by 1.05% in the last 24 hours and almost 12% over the past week, although it has risen 37.5% in the last month. The price movement of the memecoin has hit a roadblock as whales dumped enormous amounts of DOGE and the spot pressure was reflected in the derivatives market.

According to The Santiment, DOGE whales lost more than 170 million tokens in a single day. It led to a sudden decline in Dogecoin from $0.24 to $0.21 during the weekend, and resulted in panic selling among retail traders. The trading volume fell, indicating a decreasing appeal of DOGE.

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Over $6.78 million in long positions were liquidated in the last 24 hours. The net open interest fell by nearly 7% to $2.58 billion. While some bulls still held on, Binance’s (CRYPTO: BNB) long/short ratio was 3.46, and the market’s overall sentiment was bearish, with a combined long/short ratio under 1. The one-way positioning reflects the ambiguity of the traders towards Dogecoin’s short-term trend.

Dogecoin’s price action is creating a descending wedge pattern, a formation that has been a classic indicator of bullish reversals. The Bollinger Bands and the Chaikin Money Flow show initial indications of an increasing buy-side demand. The CMF, in fact, just bounced near the neutral line, which indicates new accumulation.

If DOGE can hold support at $0.21 over time, there could be a bounce to the middle of its descending channel. Short-term targets are $0.225 and $0.23, with stronger resistance at $0.238. If Dogecoin can break above them, bull momentum could take it to $0.27 and beyond.

A rally might be near as a descending wedge and a bullish flag, are both known to result in upward breakouts. Popular cryptocurrency trader, Carl Moon, believes that DOGE is going to rally to $0.29 if the pattern holds, while analyst Ali Martinez is anticipating at least a 15% rise once the wedge breaks to the upside.

The DOGE market is at a crossroads. Since technicals are bullish but sentiment and volume show warning signs, everything depends on whether Dogecoin will break above $0.23 or not. Moving past the resistance level can revive DOGE momentum, but if that doesn't happen, DOGE can even go back to $0.20.

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