The drop in Dogecoin’s price in the last 48 hours indicates that Doge may not be recovering anytime soon. Investors had started the new year hoping that the meme coin would retain its support level. However, the sudden drop from its initial price of $0.16 has flipped the coin into a resistance level. Investors are turning bearish as Doge whale 750 billion transactions results in a dip.
This current price drop shows that it is not the first time whales’ transactions will be affecting the token’s movement. In 2021, Dogecoin whales held 12 billion worth of Dogecoin despite the price drop. Price indicators are currently neutral, making it difficult to decide if Dogecoin will recover anytime soon. At the time of writing, it is still difficult to decide if Dogecoin will recover.
Dogecoin Predicament
Due to the market downturn, the meme coin’s most key support level dropped into resistance within 48 hours. The downward wedge has allowed Doge’s base to remain around $0.168. For the second half of the year or more than seven months, the cryptocurrency maintained this support and kept its movement contained within the structure. On 28 December 2021, Dogecoin witnessed an event that resulted in Dogecoin holders moving a significant amount of their assets. At this time, Billy Markus, the co-creator of the meme coin, announced that he owned $40,000 worth of Dogecoin cryptocurrency, about 220,000 of Dogecoin. The co-founder revealed that he has nothing to do with Doge because it’s a difficult project, but not after stating his respect for the developers volunteering over the years.
On this same day, whales’ moved over $28.65 billion worth of Dogecoin and were the only ones active, which raised investors’ concern. Dogecoin whales remain an active member of Dogecoin as they hold over 40 percent of the supply of Doge. Other investors only contributed $100 million in volume out of $28.7 billion according to the overall volume.
Effect Of Whales’ Transaction On Doge Price
Since whales possess a large quantity of Doge, any unexpected movement can negatively impact the token’s value and price. It is currently unknown whether the whales have sold the assets. However, investors are likely to become negative due to the abrupt movement, as sentiment is at an all-time low, just as it was four months ago.
It will be difficult to forecast whether Doge will recover to maintain a stable level now that it has reached resistance owing to the market slump. All price indications are currently bearishly neutral. Being an incredibly volatile asset, it just takes a major headline to create a significant increase in value and price. The main redeeming factor of the meme coin is its social presence.
