Dogecoin (DOGE) extended its slide, falling 4.11% over the past day to $0.2266. Market capitalization went down to $34.25 billion after rejection at $0.31. The token fell below the $0.2535 support, amplifying fears of a pullback towards the $0.20 zone.
DOGE reached the $0.2535 zone but failed to sustain strength above that. Analysts note that the failure of the breakout signals a short-term bear trend. Selling momentum has strengthened with the price headed towards crucial zones of support. Investors await DOGE’s defense of such areas.
According to a market insight by Crypto TXG, DOGE tested around the $0.2535 zone but could not hold above. The slide below that critical level has pushed the coin lower for the short term, with the momentum shifting towards lower price levels.
The next significant support is seen at $0.20, a place that will likely determine the immediate short-term direction of Dogecoin. A sharp rebound from this zone could spark a bounce, potentially leading to a retest of $0.2535, which may now serve as resistance.
The recent pullback reflects the ongoing battle between buyers and sellers on these major fronts. While sentiment remains cautious, many investors are closely watching if DOGE can stabilize at $0.20 and stage a recovery.
Also Read | Dogecoin Eyes $0.78 After Massive 2 Billion Whale Purchases
Whale Alert recorded a large Dogecoin transaction within the past day. About 122.4 million DOGE valued at $28.5 million were traded between wallets. Given the size, it is likely that a whale initiated the transaction. Such large transactions often reflect potential market strategies or shifts in sentiment.
Binance sent the wallet, while the receiving one was an unknown self-custody address. Outflows from exchanges typically mean that coins will be kept for a long time. Large investors are, in most cases, moving the coins from exchanges to their private wallets in order to secure them, which can be interpreted as a bullish signal even when the price is going down in the short term.
The recent outflow is in line with an 18% decrease in DOGE over the last seven days. The whale is probably taking advantage of the fall to get more coins. Observers will monitor if this trend continues, as accumulation by major holders often precedes price stabilization or future upward momentum.
Also Read | Polygon Price Outlook: POL Eyes $0.2889 After Testing $0.2000 Demand Zone
Also read: Plasma (XPL) Price Analysis – Is the Hype Sustainable?
