Dogecoin (DOGE) has decreased by 3% over the past week, currently trading at $0.2205. Previously, as the meme coin craze cooled down, DOGE ended days of strong gains and above-average trading volume.

In the past 24 hours, DOGE's on-chain transaction volume reached $1.8 billion, but compared to the previous day's trading volume, it decreased by 37%, indicating a decline in market activity.

This may suggest that short-selling momentum is weakening, paving the way for a bullish trend in DOGE's price in the short term, supporting a potential rebound.

On-chain data from Santiment shows that Dogecoin whales have reduced their holdings by 170 million tokens in the past few days, cashing out over $40 million, which has put significant selling pressure on this leading meme coin.

However, this may just be a normal profit-taking operation, part of a pullback after a strong price surge. From a technical perspective, DOGE's daily chart has entered the overbought territory, and this wave of whale selling could actually help the market to adjust healthily, preparing for the next round of upward movement.