After a strong bull run in 2021, Dogecoin has fallen significantly, dropping over 10% on the last day and 22% on the previous week.
A whale might have triggered this when they sold 400 million DOGE on Binance on 5 July.
This whale had been quietly buying Dogecoin since December 2023, mainly from Binance.
While the whale's short-term view on Dogecoin might be bearish after selling half its holdings, its remaining 379 million DOGE indicates some long-term belief.
There's a chance Dogecoin could fall further and hit $0.075. However, recovery is still possible if the price doesn't close below $0.1 with a daily candlestick.
Dogecoin, once the star cryptocurrency of the 2021 bull run, has lost a significant support level and is now in a freefall.
We now have Dogecoin trading at around $0.098 after it fell by more than 10% in the last 24 hours before writing and by 22% in the last week—along with an 86% dip from its previous all-time high of around $0.737.
Why did Dogecoin crash this hard all of a sudden?
Between 4 and 5 July, the crypto market entered a massive dip, kicking thousands of leveraged investors off their trades and putting Bitcoin significantly underneath the $55,000 zone as the market's fear and greed index turned from a neutral reading to outright fear.
However, Dogecoin traders, in particular, suffered through this ordeal after losing around $15 million to liquidations between Thursday and Friday, according to data from Coinglass.
Dogecoin’s total liquidation chart
However, the reason for this sell-off might have come from a whale's actions on 5 July.
According to data from Whale Alert, a certain whale dumped a staggering 400 million Dogecoin into Binance right around the time the memecoin was attempting to stabilize its standing at the crucial range between $0.11 and $0.1.
This whale’s transfer was worth around $41.08 million at the time of the transaction and is directly linked to the downslide that pushed Dogecoin to the $0.0988 price level where it now sits.
According to data from Blockchair, this Dogecoin whale has been quietly accumulating this Dogecoin since December 2023, mostly from Binance.
This whale’s change in position at such a critical juncture now indicates a strategic shift in sentiment, putting some bearish pressure on the memecoin.
Blockchair data also shows that this whale still holds 379 million Dogecoin, worth a little more than $37 million at the time of writing, signalling that the whale merely sold half of its holdings.
The Dogecoin whale holdings
Judging by the above, it is safe to assume that the whale's short-term sentiment on Dogecoin might have turned bearish while the long-term sentiment remains intact.
According to the charts, the bulls are currently at work, attempting to stage a comeback from the memecoin's fall below the $0.1 price.
Dogecoin’s fall below $0.1
There is a good chance that Dogecoin will continue to fall and hit the $0.075 price level.
However, investors should watch what happens around $0.1. A recovery remains possible if a daily candle close below this price level doesn't occur.
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