Dogecoin Price Forecast: Whales Dump 290 Million DOGE as PEPE, FLOKI Dominate

FXEmpire.com -

Dogecoin price tumbled to weekly low of $0.156 on Thursday, May 30 2024, reflecting a 10% downsizing in the last 5 days. On-chain data trends suggest whale investors may be dumping DOGE to ape in on Ethereum-hosted memes. 

Dogecoin Price Dips 10% Despite Elon Musk Support

On May 24, the global Dogecoin community was thrown into turmoil after “Kabosu’ the iconic dog on the DOGE logo passed away.

Kabosu’s owner, Atsuko Sato, announced the news in a post on her official blog, expressing her deep gratitude for the love and support shown to Kabosu over the years.

Over the past week, crypto community and fans of Kabosu have expressed their condolences, sharing tributes and some favorite memories of the dog that became an internet legend.

Tesla CEO, Elon Musk, also showed support posted a somber picture on Twitter expressing his condolences for Kabosu.

Elon Musk Shows Support to Dogecoin (DOGE) Community after Kabosu’s Death

However, the bullish tailwinds from Elon Musk comments, Dogecoin price slipped into a downward trajectory this week. The ongoing DOGE price decline can be attributed to crypto investors showing preference for Ethereum-hosted projects in the aftermath of the spot ETH ETF approval on May 24.

Dogecoin Price Action (DOGE/USD) After Ethereum ETF Approval

Dogecoin price is trading below the $0.16 mark at the time of writing on May 30, reflecting a 10.61% decline from the weekly timeframe peak of $0.18 recorded on May 26.

Meanwhile during that period, Ethereum-hosted memecoins have gained significant traction. PEPE price registered a new all-time high, while Floki Inu (FLOKI) also came just 18% shy of a new global peak, underlining investors’ overwhelming preference to lean into Ethereum ecosystem in hopes of front-running the imminent inflows of institutional investment.

Whales Investors Offload 290 Million DOGE in 5 days

In affirmation of this bearish Dogecoin price outlook, on-chain data shows that whale investors have been selling off unusually high volumes of DOGE since the SEC approved Ethereum ETFs last week.

Santiment’s chart below tracks Dogecoin balances controlled by whale wallets holding at least 10 million DOGE (~$1.6 million).

Dogecoin price vs. DOGE Whale Wallet Balances

As seen above, the whales held a cumulative balance of 17.62 billion DOGE as of May 26. But at the time of writing on May 30, that figure has rapidly dwindled to just 17.33 billion, reflecting a decline of 290 million DOGE.

When valued at the current prices, it implies that the Dogecoin whale have offloaded over $46 million worth of DOGE over the last 4-days. Due to whales financial muscle and influence on the community, DOGE price has unsurprisingly dropped 10.61% during that period.

If the whales intensify the selling pressure, Dogecoin price could slide further downward in the days ahead.

Dogecoin (DOGE) Price Forecast: $0.15 Support at Risk

Dogecoin price has lost considerable traction this week, with whale investors offloading $46 million worth of DOGE shutdown in the last 3 days. This puts DOGE price at risk of losing the $0.15 support level in the near-term.

With DOGE price currently trading at $0.16, the Bollinger band technical indicators also shows that bears are now on the verge of a downswing below the critical support level at the 20-day SMA price of $0.153

Dogecoin (DOGE) Price Forecast | TradingView

The chart above shows that the next major support cluster for Dogecoin price is now at $0.14 level. If holders that bought DOGE around that price level opt to defend their positions, an early rebound above $0.17, could be on the cards.

But if that key support level cannot hold, the bearish correction phase could send DOGE price spiralling toward $0.12

This article was originally posted on FX Empire

More From FXEMPIRE:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.