The post Dogecoin [DOGE] Faces Potential New Lows Amid Significant Whale Sell-Offs and Bearish Market Sentiment appeared on BitcoinEthereumNews.com.

Dogecoin (DOGE) faces significant challenges as recent whale sell-offs create downward pressure on the market, highlighting investor sentiment changes. With a 17.64% decline in the past day, DOGE’s bearish sentiment reinforces the risk of establishing new lows in the near term. “The role of whale trades in influencing prices cannot be overstated,” a COINOTAG analyst mentioned. “Their actions create ripples that impact retail traders significantly.” Explore how recent whale sell-offs are affecting Dogecoin’s market dynamics, as sentiment turns bearish amidst significant price declines. Whales Sell-off Causes Bigger Consequences for DOGE In a startling turn of events, Dogecoin whales—investors holding substantial amounts of DOGE—have sold off 270 million tokens within a mere 24 hours. This massive sell-off has accelerated a downward trend, resulting in notable price declines and spreading bearish sentiment across the market. This trend suggests that whales might be attempting to realize profits, break even, or limit potential losses during a period of increased market volatility. Historically, such sharp sell-offs indicate a tilt toward bearish movements until a significant boost in buying activity occurs to counteract the downtrend. Source: X The actions of these whales are resonating throughout the market, contributing to a broader trend of retail traders closing other long contracts and further adding to the bearish pressure being felt throughout the crypto landscape. Derivative Trades Reflect a Bearish Outlook for DOGE A comprehensive analysis of derivative trading indicators reveals a distinct bearish sentiment surrounding DOGE. Two core metrics—the Funding Rate and Open Interest—have both shown negative trends, indicating that sellers are in control of the market dynamics. As of the latest data, the Funding Rate for DOGE stands at a negative 0.0245%, indicating that sellers hold the advantage. This slight negative funding reveals that perpetual contracts are favoring sellers rather than buyers, which is crucial for predicting…

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Filed under: News - @ February 3, 2025 12:22 pm