Dogecoin Faces Price Challenge Amid BONK Dominance: Can DOGE Maintain $0.15?

Dogecoin Doge

DOGE began trading at $0.15 on April 26, facing declines for three consecutive days, while competing memes BONK and PEPE saw significant gains.

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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.

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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.

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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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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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