Summary
The price of Dogecoin (DOGE) decreased by 6.4% over 24 hours, due to technical resistance, selling pressure from major traders (whales), and overall weakness in the altcoin market, amidst rising Bitcoin dominance.
Price rejected at resistance level of $0.2050 after breaking an important trend line
$30 million worth of DOGE transferred by a market whale to the Robinhood platform indicates potential profit-taking.
Bitcoin's dominance increased by 0.08% over 24 hours, reducing liquidity in altcoins.
Detailed analysis
1. Technical resistance and profit-taking
DOGE faced rejection at the resistance level of $0.2050 despite breaking a major trend line at the beginning of the week. The price is currently trading below the 50-day moving average at $0.202 and the 200-day moving average at $0.207, with the Relative Strength Index (RSI) at 46 indicating weak buying momentum. It is likely that traders took profits after the price rose by 6% on June 11, following Elon Musk's comments regarding Trump and expectations of launching investment funds tracking DOGE (Hailey on X).
2. Whale activity and mood change
A market whale transferred approximately 155 million DOGE, equivalent to $30 million, to the Robinhood platform on June 10, which usually signals impending sell-offs. This coincides with a 3.1% decrease in open positions in the derivatives market over 24 hours, while awaiting the SEC's decision on the DOGE ETF, which is expected to achieve a 69-80% approval rate but faces regulatory delays (Cryptonewsland).
3. General pressure on altcoins
Bitcoin's dominance rose to 63.25% by 0.08% over 24 hours, while the Altcoin Season Index remained at 30, indicating a period of Bitcoin dominance. As the Fear and Greed Index in the cryptocurrency market decreased to 61 (from 65 yesterday), traders prefer the relative stability of Bitcoin over meme coins like DOGE, especially with the slowing US economy and the impact of the Consumer Price Index (CPI Analysis).
Summary
The decline in DOGE's price is attributed to technical resistance, liquidity exit led by major traders, and a shift in investment sector towards Bitcoin. Will Dogecoin be able to detach from the weakness of the altcoin market through its increasing adoption in gambling platforms and layer two updates?