Dogecoin Price Threatened by Miner and Whale Sell-Offs

Dogecoin’s (DOGE) price has suffered a 16% drop since reaching a local high of $0.096 on April 4. Both miners and whale investors seem unconvinced of an imminent recovery. These market players have been offloading their holdings, potentially applying further downward pressure on the cryptocurrency’s price.

The blockchain has been in a downward trend since April 18. On-chain data shows that top Dogecoin miners and whale investors have been selling their holdings, potentially prolonging the bearish market control. Between April 1 and 25, miners sold 210 million DOGE, worth nearly $16.8 million at the current $0.08 market value.

A reduction in miners’ reserves can be seen as a bearish signal, as it suggests miners are less confident in the cryptocurrency’s price prospects and prefer to sell rather than hold their assets. This selling pressure could contribute to a further decline in DOGE’s price.

Whale investors in the Dogecoin ecosystem have also been reducing their wallet balances. Over the last twenty days, whales holding 100 million coins and above offloaded 440 million coins, worth approximately $35.2 million. This selling pressure may lead to a further decline in the cryptocurrency’s value.

According to IntoTheBlock’s, Dogecoin bears could push the price down to $0.076, which is the last major support before further downside can occur. However, 164,000 addresses holding 13 billion DOGE tokens are expected to offer considerable support around the $0.076 mark.

Dogecoin (DOGE) Whales Wallet Balances vs Price. April 2023. Source: Santiment

If that support level fails, DOGE price may drop towards its next resistance zone at $0.069. On the other hand, a price increase beyond $0.082 could negate the bearish trend, but it would face resistance from 175,000 addresses holding 2.2 billion tokens at that price range. The next major resistance level is at $0.11, with 734,000 addresses holding 19.20 billion DOGE. Overcoming this resistance could propel DOGE towards the $0.15 resistance mark.