Major Meme Coin Indoge Coin (DOGE) is struggling to gain momentum despite excitement over the expected launch of the US list Dogecoin ETF this week.
Data on the chain reveals a decrease in whale participation and a general increase in the selling of coins across exchanges, suggesting the possibility of a deeper price rebound in the coming days.
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Doges fade as whales hold back, traders sell
The market is forecasting the launch of Rex-Soprey’s Dogecoin ETF (DOJE) tomorrow.
However, Doge’s price performance remains calm before the milestone, indicating a lack of enthusiasm from traders.
Whale accumulation has slowed significantly over the past week, according to Nansen, an on-chain analytics platform. Large investors have wallets with purses that contain more than $1 million in their wallets, which seem unconvinced by the ETF story, cutting their holdings by more than 4% in the past week.
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As large holders reduce accumulation, it indicates a bearish shift in market sentiment. This reduction in Doge demand from key players can lead to lower purchase pressures, which can cause price stagnation and short-term declines.
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Additionally, Doge’s Exchange Reserve has steadily risen over the past week, suggesting that more traders are relocating to interact with their intentions to sell Doge. At the time of writing, Altcoin’s exchange expenditure is at Doge of 28 billion, up 12% over the past seven days.
The rise in exchange expenditures indicates that holders are moving assets to trading platforms to sell rather than hold them. This influx of coins into exchanges increases the supply available in the market.
Doge can slide towards $0.20 if the support is broken
While the launch of ETFs could still provide a catalyst, current measurements on the chain suggest that traders are preparing for further debilitating rather than breakout rally. If this occurs, you could attempt to violate the support floor, which was formed at $0.2583.
This level of violation could drop further to $0.2018.
But Doge’s new demand will negate this bearish outlook. The Bulls could trigger spikes above $0.2980 when they regain control.
