Dogecoin Whale Sells 2 Billion Doge as Price Nears Death Cross

Dogecoin (DOGE) has recently faced strong selling pressure, leading to significant losses for investors. As the price struggles to maintain key support levels, the downtrend of DOGE is becoming more severe due to the potential formation of a Death Cross, signaling a shift in market sentiment that could push this altcoin even lower.

With the market conditions becoming increasingly negative, DOGE may lose support at the $0.20 level, indicating further challenges ahead.

Dogecoin whales dump in anticipation of a downtrend

A key technical indicator to watch is the impending Death Cross, where the 200-day Exponential Moving Average (EMA) is poised to cross below the 50-day EMA. This would be the first Death Cross in 8 months, ending Dogecoin's 5-month price rally.

If the Death Cross occurs, it could signal the start of a more prolonged downtrend, as traders often view this pattern as a sell signal. The possibility of a Death Cross has already impacted investor behavior.

Whale investors, those holding large amounts of DOGE, have reacted quickly to the negative sentiment. Over the past 48 hours, addresses holding between 100 million and 1 billion DOGE have sold off 2 billion DOGE, worth over $400 million.

The aggressive dumping by these whale investors underscores the increasing uncertainty about Dogecoin's recovery potential. With many large investors exiting the market, the ability of Dogecoin to regain its upward momentum seems increasingly challenging. As the major market participants withdraw, smaller investors may follow, adding to the selling pressure and driving the price even lower.

DOGE price is on the edge

Dogecoin is currently trading at $0.20, attempting to hold above the $0.19 support level. Despite efforts to maintain stability, the overall market conditions suggest further downside is possible. With the Death Cross looming and selling pressure increasing, DOGE may struggle to maintain its current support levels.

If Dogecoin fails to hold the $0.19 support, it could drop to test the next major support at $0.17. Historical data shows DOGE has exhibited resilience around this price level, which may allow it to consolidate before attempting a recovery. However, further downside could lead to deeper losses if the $0.17 level is breached.

The only way to reverse the negative outlook is for Dogecoin to rise above $0.22, which has acted as resistance in recent weeks. Successfully breaking and converting this level into support could open the path to $0.26.

If Dogecoin can secure this support, the altcoin could reach $0.31, marking a near 53% increase. This would allow it to recover most of its recent losses and potentially shift the trend back to a bullish direction.