The sole anticipation individuals had for Dogecoin was that it would sustain consistent support. However, after circling the $0.16 mark for the whole month of December, Dogecoin eventually broke over as the fresh year started, and even a week into 2022, DOGE doesn’t look to be in the condition to recoup shortly.
The Dogecoin conundrum
To begin, the market drop that happened 48 hours ago turned the meme coin’s most key support level to become resistance. DOGE’s base remained around $0.16 despite being locked in a downward wedge.
For the latter part of the year or over 7 months, the cryptocurrency maintained this support and maintained its motion contained inside the framework.
DOGE/USD 1 DAY PRICE CHART: SOURCE – COINMARKETCAP.COM
The circumstances of December 28th sparked a certain cohort of Dogecoin holders, causing them to make major moves with their holdings. In one day, whales transferred approximately $28.65 billion value of DOGE.
The issue isn’t that they abruptly got active; whales currently consume over 40% of total DOGE supplies. The whales were the lone ones who were engaged that day, which is cause for alarm.
Non-whale investors added just about $100 million to the entire volume processing on the network that day, with volumes totaling $28.7 billion.
It’s easy to see how whales’ quick movements might have a detrimental impact on the token’s motion. Whilst it is still to be proven whether the whales were sold or not, the market mood has been known to become negative in the aftermath of such incidents.
This is supported by the reality that the next day, the mood was at its lowest point in four months.
Looking ahead, it is impossible to predict whether or not DOGE will rebound because all price indications are now bearishly indifferent (ref. Dogecoin price action image). The meme coin’s main redeeming grace is its online footprint, as the network’s growth effort is undoubtedly a farce.