DOGE began trading at $0.15 on April 26, facing declines for three consecutive days, while competing memes BONK and PEPE saw significant gains.
Despite the hype around the Bitcoin Halving earlier in the week, major Proof-of-Work coins have struggled for momentum since April 20, sparking concerns among investors about a possible post-halving downturn.
Dogecoin Price Analysis: Whale Transactions Decline Post-Halving
Dogecoin, one of the leading meme coin projects utilizing the PoW consensus mechanism, has faced challenges recently. The Dogecoin price has dropped by 8.3% since the Bitcoin halving, contrasting with the positive performance of other major meme coins like BONK (+120%), PEPE (+70%), and Shiba Inu (+35%) this week.
Dogecoin DOGE Price action after Bitcoin BTC Halving: Source – TradingView
Analysis of on-chain data indicates that the decrease in whale investors’ activity after the halving has contributed to this negative price trend.
According to IntoTheBlock’s Large Transactions chart, the number of significant transactions exceeding $100,000 in value has declined since the eve of the halving on April 19. On April 25, only 398 large transactions were confirmed, marking a 34% decrease from the pre-halving level of 596 transactions.
Dogecoin Price vs DOGE Whale Transactions | IntoTheBlock
The decline in whale transactions poses risks to Dogecoin’s price stability. Firstly, these transactions provide liquidity to the market, and a reduction in them can lead to increased volatility, especially during large sell-offs.
Moreover, decreased whale activity may signal a loss of confidence among institutional investors, influencing retail investors and swing traders to follow suit and sell their holdings. This could further intensify selling pressure, contributing to a downward spiral in Dogecoin prices in the near future.
Dogecoin Price Analysis: Bearish Outlook as Support Weakens
As of April 26, the price of Dogecoin (DOGE) teeters just above the $0.15 mark, marking an 8.4% decline over the week. Following the cautious sentiment among whale investors post-Bitcoin Halving, DOGE appears poised for a potential downturn below the critical support level of $0.15.
Analysis from IntoTheBlock’s In/Out of the Money Around Price (IOMAP) data corroborates this bearish outlook for Dogecoin.
Dogecoin DOGE Price Forecast | IntoTheBlock
The IOMAP chart indicates a significant resistance cluster at $0.16, outweighing the immediate support buy-wall. This suggests that a reversal below $0.15 is more probable in the near future.
However, there remains a glimmer of hope as a notable address, holding 476 million DOGE acquired at an average price of $0.14, could intervene to spark an early rebound and mitigate substantial losses.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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