Assess whether DOGE holds above $0.088 as whale selling pressure increases

Dogecoin (DOGE) is facing strong selling pressure since losing the $0.1 level. During this prolonged downtrend, DOGE broke below the $0.09 support level and hit a low of $0.088 before a slight rebound.

At the time of writing, DOGE is trading at $0.092, up 2.56% in the past 24 hours, reflecting increased market volatility.

Retail Activity Drops Significantly

The overall cryptocurrency market is experiencing a decline in capital flow, with memecoins, especially DOGE, being the most affected.

In the context of risk-avoidance sentiment dominating, retail investors have almost completely exited the market. Data from CryptoQuant on retail trading activity shows no significant activity from this group. The indicator is currently neutral, indicating retail traders are neither showing clear enthusiasm nor concern.

Source: CryptoQuant Retail investors are choosing to stay on the sidelines, perhaps waiting for more favorable conditions to make buy or sell decisions.

A similar trend is reflected in the spot trading volume bubble, with indicators remaining in the neutral zone. This suggests the market lacks clear momentum to move strongly up or down, making it more susceptible to large swings from participants.

While retail investor activity is nearly “frozen,” whales are taking advantage of the opportunity to increase their activity. Especially since DOGE fell below $0.1, long-term whales have significantly ramped up trading.

Source: CryptoQuant Data on average spot order sizes shows an increase in large orders from whales at prices of $0.089, $0.093, and $0.091, most of which are sell orders.

This situation, where whales dominate the sell side and retail investors remain silent, has left the market weak, increasing the risk of further price declines.

Does Dogecoin Still Have Hope?

Dogecoin has rebounded from the $0.088 bottom as buying pressure increased, pushing the memecoin price up to $0.092. Notably, trading volume has risen to 304 million, surpassing the sell volume of 263 million.

Source: Coinalyze This demand has led to a short-term recovery for DOGE. However, the market structure still maintains a clear downtrend.

The RSI indicator has shown signs of recovery, reaching 34, but remains deep in the bearish zone and close to oversold levels. Additionally, DOGE remains below the Parabolic SAR indicator, continuing to confirm a weak market structure.

Source: TradingView Current market conditions suggest Dogecoin is likely to continue facing weakness in the near future. To break out of this, DOGE needs to surpass and hold above the key SAR level at $0.103.

However, if buying pressure on daily timeframes diminishes, DOGE could continue sliding below $0.08, with $0.079 serving as a critical support level.

Mr. Giao