Whale selling of 150 million Dogecoin increased short-term pressure on DOGE but did not trigger a full market breakdown.
DOGE is holding near the $0.12 support zone, suggesting buyers are still absorbing supply despite volatility.
A recovery depends on broader Cryptocurrency and Crypto Market sentiment, as Meme Coins move strongly with overall risk appetite.
Dogecoin came under pressure after large investors, known as whales, sold a considerable number of tokens in a short time. These whales moved about 150 million DOGE out of their wallets and released them into the market over several days.
The sale happened near the end of December, when trading activity is usually low. Dogecoin dropped toward $0.12 after failing to hold higher prices.
Dogecoin whales hold large amounts of tokens, so their actions often affect short-term prices. When these holders push 150 million DOGE into the market in a short period, supply rises fast. When demand does not increase at the same speed, prices fall.
The timing made the impact stronger. Late December often brings lower liquidity, leading to fewer active buyers and sellers. In this type of market, even one large sell order can push prices down quickly. This explains why Dogecoin dropped sharply after breaking key support levels.
Also Read: Dogecoin Drops as Traders Reduce Exposure Amid Market Volatility
After the whale sell-off, Dogecoin fell toward the $0.12 area and traded near $0.123. This price zone has acted as short-term support in recent weeks. Trading volume rose during the drop, indicating real selling pressure rather than temporary price swings.
Despite the fall, Dogecoin did not crash completely. Market capitalization stayed relatively stable compared to earlier sell-offs. Daily trading volume also stayed above average. These signs show that buyers remained active while whales reduced their holdings.
On-chain data suggests that whales did not fully exit Dogecoin. The data points more toward redistribution. Some wallets that held DOGE for months moved their coins, but not all of those tokens stayed on exchanges. In several cases, other large players or liquidity providers absorbed the DOGE after it passed through exchanges.
This behavior matters because it suggests that whales did not abandon Dogecoin entirely. Some whales likely rebalanced portfolios, took profits, or prepared for new market conditions in the new year. If this view holds, the strongest selling pressure may already be over.
From a technical perspective, Dogecoin broke below an important short-term support zone between $0.13 and $0.14 during the sell-off. Once this level failed, automated trading systems and stop-loss orders added more selling pressure.
Markets often react strongly after such events and then slow down. If Dogecoin holds above the low $0.12 range and starts moving sideways, sellers may lose control. Price stability at current levels could lay the groundwork for a recovery, especially if trading volume falls while prices remain steady.
Dogecoin usually follows the wider crypto market. Bitcoin and major altcoins strongly influence its price. When the market is risk-on, meme coins often rise quickly. When sentiment turns negative, they usually fall faster than larger coins.
If Bitcoin and other major cryptocurrencies regain strength, Dogecoin could benefit from renewed confidence and speculation. If the broader market stays weak, DOGE may struggle to attract enough buyers to push prices higher.
Sentiment is one of the major factors driving Dogecoin price movement. In contrast to utility-based projects, which have a wide array of use cases, DOGE's growth is mainly driven by community strength, social media, and the broader market mood.
Demand can increase significantly in a very short time due to positive news, trending topics, and, most importantly, a celebrity switching back to crypto dogecoin.
The uncertainty surrounding the crypto regulations and adoption makes the institutional investors wary of Dogecoin’s position. DOGE becomes even more vulnerable to the large whale sell-offs.
The price of Dogecoin depends on whales' selling habits. If large holders of DOGE suddenly stop selling and the inflow of coins into exchanges shrinks, the market could calm down.
Dogecoin’s medium-term outlook calls for stronger demand, improved market sentiment, and support from the broader crypto market.
If it lacks these elements, any bounce in price will be weak and subject to selling pressure at higher levels.
Also Read: Dogecoin May Rally 600% in 2026 on Strong Multi-Year Support
After the whales moved and released 150 million DOGE into the market, the Dogecoin price dipped below critical support levels. If selling pressure dissipates and buyers continue to support current prices, a rebound is possible.
Risks remain elevated as whales may resume selling. The coming days will determine whether Dogecoin builds a solid base for recovery or drifts into a deeper correction.
1. Why did Dogecoin price fall recently?
Dogecoin dropped after whales sold around 150 million DOGE in a short period, increasing supply and pushing prices toward $0.12.
2. Are whales exiting Dogecoin completely?
Current data suggests redistribution and profit-taking rather than a full exit, as not all DOGE moved by whales stayed on exchanges.
3. What is the key support level for DOGE right now?
The critical short-term support zone is around $0.12, where buying interest has appeared after the sell-off.
4. Can Dogecoin bounce back from this drop?
A bounce is possible if whale selling slows and the broader crypto market improves, allowing demand to absorb the excess supply.
5. What factors should investors watch next?
Whale wallet activity, exchange inflows, trading volume, and overall crypto market sentiment will be key indicators.
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