Could Dogecoin Price Lose $0.20 Support In February?

On February 7th, Friday, the Dogecoin price recorded a 0.46% drop to reach a trading value of $0.24. The selling pressure can be attributed to broader market correction as Bitcoin shows another failed attempt to sustain above $100k. However, the DOGE sellers could further accelerate the current correction trend as onchain data records a significant decline in whale activity.

According to Coingecko, the DOGE’s market capitalization stands at $36.7 Billion, while the 24-hour trading volume wavers at $1.92B,

Key Highlights:

  • 1M+ weekly DOGE transactions plummeted from 3,490 to 840, indicating reduced involvement from major investors
  • The dogecoin price breakdown from the double top reversal pattern hints at a 30% fall ahead.
  • The DOGE correction could be witnessed in between supports at $0.22 and $0.173.

DOGE Whale Trades Decline Over 60%

The once-vibrant Dogecoin whale activity has seen a dramatic decline, with large transactions drying up at an alarming rate. According to on-chain analytics firm Santiment, the number of $100K+ DOGE transactions has fallen from 20.2K to just 6.2K weekly, marking a significant drop in large-scale movements.

Similarly, the $1M+ weekly DOGE transaction has plunged from 3490 to 840, highlighting that major investors have either excited positions or paused accumulation.

Whale Activity | Santiment

The tweet from the analyst platform suggests that a spike in DOGE’s whale activity could signal a renewed accumulation trend.

Dogecoin Price Poised For $0.2 Breakdown Amid Reversal Pattern

In February’s first week, the Dogecoin price witnessed a sharp decline from $0.34 to $0.248, projecting 28%. According to daily chart analysis, the falling meme coin price gave a bearish breakdown from the $0.26 neckline support of the double bottom pattern.

Theoretically, the chart setup is characterized by two key reversals like the letter “M”, indicating the presence of high supply pressure from above. 

The coming weekend could bolster the DOGE price and retest the $0.26 level as potential resistance. If the pattern holds true, the post-breakdown could plunge the asset 29% down to hit $0.174.

Dogecoin price
DOGE/USDT -1d Chart

Conversely, buyers need to reclaim the neckline support to regain their control over the asset.

Also Read: SEC Delays Decision on Ethereum ETF Options, Here’s What Analysts Say

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