Dogecoin plunges 8% – Is this the ultimate ‘buy-the-dip’ moment?

DOGE slides to $0.17 as whale sell-offs outweigh accumulation, casting doubt on a $0.20 recovery.

    DOGE continues to post lower lows, breaking another key support level as market-wide fear grips investors.  Is this the ideal “buy-the-fear, sell-the-greed” moment?

The memecoin market has plunged 8.15%, erasing over $4 billion in value in the last 24 hours.

Dogecoin [DOGE], the sector’s leader, has lost its key $0.20 support, dropping 8.57%, with analysts now eyeing $0.16 as the next critical level.

Amid the sell-off, large whales are aggressively accumulating, pushing trading volume up 115.68% to $2 billion. With this surge in buying pressure, could DOGE find a floor here?

Big money moves

After peaking at $0.48 post-election, DOGE has formed three successive lower lows, each briefly acting as support before breaking down. 

Source: TradingView (DOGE/USDT)

This decline has been driven by heavy whale sell-offs, pushing major holdings to three- to four-month lows. 

Notably, despite the largest whales accumulating 1.7 billion DOGE in the past 72 hours, price action has remained weak. Instead of stabilizing, DOGE extended its decline by another 3%.

Even more telling, the same whales have now shed over 1 billion DOGE coins, reducing their holdings from nearly 73 billion to 71.5 billion. This coincides with DOGE’s 8.15% drop to $0.17.

Source: Santiment

Unlike previous bull rallies, where consistent whale accumulation provided strong market support, whale activity has been erratic since mid-January, with large holders shifting toward distribution.

Without a clear return of sustained whale accumulation, a recovery above $0.20 remains uncertain.

Short-term DOGE forecast

With the crypto market erasing $200 billion in the past 24 hours, high-cap assets remain under pressure, trading well below key support zones.

However, DOGE is showing a key divergence, with a 115% surge in trading volume, signaling heightened interest. 

This spike suggests a potential holding pattern, a setup often preceding breakout rallies “if” momentum sustains.

But can it hold? Active addresses spiked fourfold to 412,319 before retracing to 114,960, reflecting a decline in retail participation.

Coupled with low whale support and heightened market volatility, Dogecoin faces an elevated risk profile.

Source: Glassnode

While volume indicators hint at a “buy-the-fear, sell-the-greed” dynamic, flipping $0.16 into a firm support remains a key challenge, especially if broader market sentiment stays bearish.

With weak whale support and fading retail participation, Dogecoin risks further downside. 

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