Why Dogecoin Price Fell Below $0.22, And What Next?
Dogecoin (DOGE) saw a significant price drop over the weekend, falling below $0.22 after large holders sold more than 170 million tokens within 24 hours. This selloff caused the price to slide from $0.24 to around $0.215.
The whale activity coincided with a broader decline in meme coins, leading to nearly a 10% loss for Dogecoin. While this move has raised concerns about further downside pressure on the cryptocurrency, the coin was displaying 4.49% upside at the time of writing.
Dogecoin Price Dip as Whales Dump 170M DOGE
Recent data shows that large whale investors reduced their DOGE price holdings sharply. According to Santiment, addresses holding between 10 million and 100 million DOGE decreased their supply by around 170 million tokens in a single day.
This reduction lowered total holdings from 23.91 billion to 23.74 billion DOGE. The heavy selling contributed to Dogecoin reaching a one-week low on May 17.
At the same time, trading volume for Dogecoin fell by more than 34%, according to CoinMarketCap. The drop in volume indicates weakening demand amid the selloff. This combination of whale selling and low trading activity points to a cautious outlook on Dogecoin’s short-term price movements.
Derivatives Data Flips Bearish as DOGE Traders Post $7M Loss
The derivatives market for Dogecoin price also reflects bearish trends. Data from Rekt reveals that long positions worth $6.78 million were liquidated in the past 24 hours.
Short positions also suffered losses but to a smaller degree, with $1.14 million wiped out. Total liquidations over the day reached close to $7 million, mostly affecting leveraged long traders.
Open interest in Dogecoin futures declined by 6.9%, settling at $2.58 billion. This drop equals more than $290 million in closed contracts, The overall long-to-short ratio is approximately 0.94, indicating slightly more short positions than longs market-wide.$DOGE
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