Dogecoin price experienced a significant decline of over 7% in just 24 hours, reaching a level of $0.1624 after major investors sold more than one billion DOGE, according to on-chain data analysis by Ali Martinez. The sell-off has become one of the most significant whale exits within the week, indicating that pressure on the cryptocurrency, inspired by memes, has increased.
Martinez further claimed that the large DOGE holders in the range of 10 million to 100 million had significantly reduced their holdings at the beginning of November. The outflow was accompanied by a drastic plunge in price below the support level of $0.12, which ultimately demonstrated a decisive shift in favor of sellers over buyers. The whale accumulation had remained mostly flat throughout October but abruptly changed, prompting profit-taking across the board.
Traders who monitor large transactions assert that these significant sell-offs are typically a precursor to a period of high volatility, as market participants attempt to navigate the new support areas. The result of this action has been the creation of uncertainty in the short term, which has also contributed to the overall negative sentiment in the market.
According to CoinMarketCap, the market capitalization of Dogecoin currently stands at $24.62 billion, making it the ninth-largest cryptocurrency by market capitalization globally. The coin has seen a significant 84% increase in its daily trading volume, now standing at $3.94 billion. This is a clear indication that there are still many traders in the market, despite the price being under pressure.
The hourly chart indicates that there have been numerous unsuccessful attempts to maintain the price above the $0.17 mark, which ultimately led to a steady decline in the price. Analysts following the downtrend caution that the whales' activity may continue to push the price down, and that the support level at $0.15 is crucial to any recovery.
Historically, Dogecoin has bounced back after price drops caused by whales; however, continuous selling from large wallets hurts investor sentiment. The increased trading activity could mean that retail traders are buying in the dips as a way to acquire the assets at lower prices.
The reduction in Dogecoin's value coincided with the liquidation of more than $1.36 billion in leveraged positions in the entire cryptocurrency market in just one day. Dogecoin was one of the hardest-hit cryptocurrencies among those impacted by the market downturn.
According to reports, a trader made over $36 million by shorting Dogecoin, Ethereum, and other leading cryptocurrencies during the market correction. The coin also fell through a key support area near $0.18, which triggered automatic liquidations on the leading exchanges.
Market activity did not decrease with the price; instead, it increased as investors sought opportunities in the declining prices. The daily trading volume rose by more than 90%, a clear sign of retail traders' growing interest in capitalizing on potential rebounds. However, analysts still warn that continued whale outflows could keep the pressure on the price if institutional demand is not restored.
Dogecoin’s recent 7% drop follows over $1 billion in whale sell-offs, marking intensified volatility across the crypto market. With rising liquidations and short positions, traders now watch for a potential rebound near the $0.15 support zone as momentum weakens.
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