Dogecoin dips by 11% this week as whale balances shrink

Key takeaways

• Dogecoin traded near $0.085 on Friday after losing more than 11% this week.
• Two large-wallet cohorts reduced their combined holdings by 100 million DOGE since Tuesday.
• A close below $0.084 could expose $0.078 and $0.070, with resistance beginning at $0.086.

Dogecoin traded around $0.085 on Friday, approaching a key trendline area after a weekly decline of more than 11%.

Falling balances among some large holders and weakening technical momentum suggest continued downside pressure. 

However, derivatives positioning offers a more mixed picture, with long positions outnumbering shorts in CoinGlass’ tracked ratio.

Large Dogecoin holders reduce exposure

Santiment’s supply distribution data shows that wallets holding between 1 million and 10 million DOGE and those holding between 10 million and 100 million DOGE have collectively reduced their balances by 100 million tokens since Tuesday.

The decline suggests some large holders are reducing exposure, potentially through profit-taking. Wallet balance changes alone do not confirm that every token was sold, but the movement adds to concerns about near-term supply pressure.

CryptoQuant’s summary indicators also point to caution. Its data identifies overheating conditions in both spot and futures markets, alongside large orders and sell-side dominance in futures.

These signals suggest that selling pressure remains significant as DOGE approaches nearby support.

Despite the price decline, CoinGlass’ DOGE long-to-short ratio stood at 0.90 on Friday, approaching its highest level in more than a month.

A reading above one indicates that longs outnumber shorts within the positions or accounts tracked by the metric.

Funding rates also remained positive at 0.0010%, meaning long traders were paying short traders to maintain their positions.

Together, the readings suggest some traders are positioning for a recovery. They do not establish that buying demand is strong enough to reverse the decline, particularly while price momentum remains weak.

DOGE tests $0.084 as momentum deteriorates

Dogecoin is trading just above the trendline area near $0.084, which serves as the immediate technical support reference.

A daily close below that level could open the way toward $0.078. A deeper correction would bring the next structural floor at $0.070 into focus.

The Relative Strength Index sits near 40, below its neutral midpoint and consistent with weaker buying momentum.

The Moving Average Convergence Divergence line remains below both zero and its signal line. Its negative, slightly expanding histogram also suggests sellers retain the near-term advantage.

DOGE remains beneath several important exponential moving averages, creating successive barriers to a rebound.

The first resistance is the 100-day EMA near $0.086. Above it, the 50-day EMA and a horizontal resistance level converge around $0.088.

Clearing those levels would help ease immediate bearish pressure. A stronger recovery would require a move above the 200-day EMA at $0.093, followed by a challenge of major resistance near $0.102.

For now, the balance between support at $0.084 and the moving averages overhead will help determine whether DOGE stabilizes or extends its weekly losses.