Key Takeaways
Why is Dogecoin under pressure after the whale transfer?
A 132 million DOGE inflow to Robinhood has raised concerns of large-scale selling, amplifying short-term market uncertainty.
What signals DOGE’s overvaluation?
Dogecoin’s NVT Ratio surged to 287, hinting at stretched network value.
Dogecoin [DOGE] witnessed a massive transfer of 132 million tokens, worth $27 million, from an unknown wallet to Robinhood, sparking fears of heightened selling activity.
Historically, such whale transfers have often preceded short-term price pullbacks, as large holders typically move funds to exchanges before selling.
The transaction’s timing, combined with fading retail demand, highlights the growing market influence of whales. With liquidity thinning across exchanges, any large sell order could heighten volatility.
Still, the absence of a sharp price drop right after the transfer showed traders were cautious but not panicking.
Can bulls defend $0.22 support?
Dogecoin continued to trade within an ascending channel, but faced repeated rejections near the $0.22 resistance.
The price hovered close to the $0.18–$0.20 demand zone, a key region where bulls attempted to prevent further decline.
The RSI at 39.99 reflected weak buying momentum and mild bearish sentiment.
However, as long as DOGE holds above $0.18, the broader channel structure allows room for a rebound.
A sustained close above $0.22 might invalidate the current bearish bias and set up a short-term relief rally.
Source: TradingView
Taker-sell dominance confirms bearish control
According to Spot Taker CVD data from CryptoQuant, sell-side dominance has persisted across the last 90 days, confirming that sellers maintained control in the Derivatives market.
The imbalance between taker buys and sells signaled lower trader confidence, with many leveraged longs closing their positions.
This steady pressure has reduced liquidity depth and raised the probability of sharp intraday swings.
Still, a sudden short squeeze could give bulls temporary relief, though current sell activity continues to outweigh buying efforts.
Source: CryptoQuant
NVT surge raises concerns about Dogecoin’s valuation
Santiment data showed Dogecoin’s NVT Ratio surged to 287, suggesting that market value outpaced on-chain activity. This typically signals an overvalued network and reduced transaction efficiency.
A rise in transaction volume would help stabilize valuation metrics and restore confidence, but until then, the high NVT ratio remains a red flag for investors.
Source: Santiment
Will DOGE avoid another breakdown?
Dogecoin’s outlook remained fragile as whales moved large sums onto exchanges and sell-side dominance intensified. The memecoin’s ability to hold above $0.18 could define its short-term trajectory.
A successful defense may spark renewed buying interest and push DOGE back toward $0.22, while a breakdown could trigger extended losses toward lower supports.
For now, sentiment leans bearish, and sustained inflows to trading platforms suggest further caution is warranted among traders awaiting a potential rebound.
Next: Analyzing Zcash’s 12% daily rally – Can ZEC retest $300 next?
