Dogecoin [DOGE] has been under selling pressure following a huge 132 million token transfer, valued at approximately $27 million, from an unidentified wallet to a trading platform — raising fears of possible wholesale selling.
Historically, such whale movements usually come ahead of near-term corrections as institutional investors like to move tokens to exchanges prior to selling. The juxtaposition of this sale with dwindling retail demand highlights the way that whale action continues to influence Dogecoin's market.
In spite of the alarm, the fact that there is no near-term price decline indicates traders are afraid but not panicked. DOGE is now trading at the $0.18–$0.20 demand level, and bulls are struggling to support this crucial region.
Technical indicators indicate weakness — the RSI of 39.99 indicates a weak bearish sentiment, and consistent sell-side control in the last 90 days indicates lower trader confidence.
Additionally, Dogecoin's Network Value to Transactions (NVT) ratio spiked to 287, indicating possible overvaluation since the market capitalization of the token is higher than actual on-chain activity. Such spikes have always indicated correction periods induced by speculation and not actual network utilization.
For the time being, $0.18 is the level to monitor. A bounce above $0.22 would indicate healing, while a break below $0.18 could lead to further losses. Short squeezes can provide temporary reprieve, yet the bigger picture remains in wait-and-see mode with whales stirring and sellers firmly in command.
