Dogecoin’s (DOGE) price is facing a crucial moment as it attempts to recover from recent losses. The meme coin fell through a descending wedge pattern but is now trying to reclaim it, with the hope of avoiding major losses. However, uncertainty looms among large wallet holders who have been selling off their holdings, causing concern for the future of DOGE’s price.
According to the Global In/Out of the Money (GIOM) indicator, a significant amount of DOGE was bought between $0.105 and $0.114, totaling close to $4 billion. This supply would have become unprofitable if DOGE slipped below $0.105, a critical support level for the coin. Despite the bullish reversal pattern, the presence of whale selling poses a challenge for DOGE’s recovery.
In the last nine days, addresses holding between 10 million and 100 million DOGE have seen a decline of 400 million DOGE, worth $44.8 million. This indicates a move to offset losses, suggesting that DOGE may struggle to recover in the near future. The next crucial resistance for DOGE lies at $0.116, with a target of $0.220 if breached, but breaching $0.128 may prove difficult.
The outcome of DOGE’s price recovery remains uncertain, with the possibility of a drawdown to $0.116 if the bullish pattern is invalidated. As large wallet holders continue to sell off their holdings, DOGE’s price may face further challenges in charting gains. Stay tuned for updates on Dogecoin’s price movements.
