On-chain data shows that Dogecoin whales are offloading their coins, providing a bearish outlook for the foremost meme coin. This comes amid the significant decline in the DOGE price, with the meme coin at risk of dropping below the psychological $0.2 level.
Dogecoin Whales Are Dumping Their Coins
Santiment data shows that Dogecoin whales, who hold between 10 million and 100 million DOGE, are currently dumping their coins. The number of coins that these whales hold has declined since July 19. At the time, these investors accounted for 16.85% of the meme coin’s total supply.
Since then, this percentage has dropped with Dogecoin whales selling some of their coins, although they still account for around 16% of DOGE’s total supply. Notably, this development coincides with the decline in the DOGE price, which indicates that these whales may be derisking to avoid potential losses.
The Dogecoin price had rallied to as high as $0.27 in July but has since then been on a downtrend and is now at risk of dropping below $0.2. The bearish sentiment towards the foremost meme coin is also strengthened by the current Bitcoin price action. The flagship crypto has been on a decline since it reached a new all-time high (ATH) of $124,000 early last month.
However, despite the current bearish sentiment towards DOGE even among Dogecoin whales, there are upcoming developments that paint a bullish outlook for the foremost meme coin. The Fed is expected to cut rates at its September FOMC meeting, which could inject new liquidity into DOGE and serve as a catalyst for higher prices.
Meanwhile, the Dogecoin ETFs could launch in October, with the SEC expected to approve these funds next month. Moreover, Bloomberg analyst Eric Balchunas revealed that REX Osprey could launch a DOGE ETF through the 40 Act by next week.
DOGE Is Stuck In a Wedge
In an X post, crypto analyst Brittany Willo noted that Dogecoin is currently stuck in a wedge. The analyst urged the bulls to step and defend the $0.21 to $0.22 range. Will predicted that the DOGE price could reach as high as $0.30 if it breaks out to the upside. This will mark a new 2025 high for the meme coin.
Meanwhile, crypto analyst Trader Tardigrade provided a more bullish outlook for the Dogecoin price. In an X post, he said that DOGE remains bullish with the 5-wave Descending Broadening Wedge. His accompanying chart showed that the meme coin is preparing for a rally to as high as $0.7, which will bring it within reach of its current ATH of $0.73.
At the time of writing, the Dogecoin price is trading at around $0.21, down in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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