Dogecoin [$DOGE] attempted to break out but failed at $0.09. With the rejection, the memecoin has traded within a strong downtrend.
The memecoin even breached $0.085, which has acted as support the past week, and dropped to a low of $0.081. As of this writing, $DOGE was trading around $0.082, down 3.07% on the daily charts, adding to its 4% weekly decline.
Dogecoin faces intense selling pressure as whales flip bearish
Dogecoin has recently experienced intense sell pressure from all market participants, especially whales.
Interestingly, amid this continued market decline, whales have remained extremely active. The spot average order size has remained positive through the past week, indicating big whale orders.
Based on this metric, whale orders appeared every time $DOGE tried to reclaim $0.09, especially around $0.088. This implies that whales have aggressively sold at these price levels, making them strong resistance levels.
Spot inflows further evidence this selling activity. For example, on the 19th of June, selling activity on exchanges surged extensively.
The memecoin saw $23 million in inflows on 12-hour timeframes and $12 million in 8-hour timeframes. Over the same period, $20 million and $10 million flowed out of the exchanges.
With inflows exceeding outflows, it validates our earlier observation that whales are actively selling. Historically, a sustained period of whale-selling pressure has preceded a weakened market structure, leading to a further price drop.
Network activity shows structural strength
Despite continued selling activity, Dogecoin network activity has remained relatively high. Daily Active Addresses jumped to 42k on the 19th of June, according to Santiment data.
The memecoin last recorded such a high number of participants in April, which marks a 2-year high. Rising addresses indicate high network usage, which strengthens fundamentals.
Such high usage provides structural strength, which is a recipe for a market rebound from the current weakness.
What’s next for $DOGE?
Despite high usage activity, selling pressure still dominates the market. Amid intense selling pressure, Dogecoin’s downside momentum has continued to strengthen.
Examining the memecoin’s ADX with SMA, the negative index has continued to rise, reaching 28. At the same time, the positive index fell to 15.
Such a setup suggests the downtrend could persist. If the market weakness persists with sellers still in control, $DOGE risks a drop below $0.08 to $0.07.
However, the current usage activity gives hope, and new addresses entering could help avoid further slips. If these addresses are digging in at low price levels, demand could help Dogecoin reclaim $0.09.
Final Summary
- $DOGE breached the $0.085 support and fell to a low of $0.081, as bears, especially whales, eye a drop to $0.07.
- Dogecoin network activity remains steady, indicating strong on-chain demand and offering $DOGE a chance at a market recovery.
