As the market anticipates a classic Dogecoin rebound post-correction, a concerning signal emerges: whales are shying away from buying the dip. With their inaction, declining liquidity, and plummeting volumes, selling pressure could escalate further. Is the DOGE crash really far from over? Here's what the on-chain data reveals.
Beyond whale activity, several technical indicators reinforce the hypothesis of a weakening bullish momentum. The number of daily transactions on the Dogecoin network has also declined, reflecting a decreasing interest from both retail and institutional investors.
Daily active addresses, a crucial metric for evaluating real engagement on a blockchain, show a consistent downtrend over the past several weeks. This correlation between whale inactivity and declining overall network usage suggests that the market is going through a widespread wait-and-see phase.
Technical analysts also point to critical support levels that DOGE must absolutely defend to avoid a deeper correction. The RSI on daily and weekly timeframes indicates a neutral zone, with no clear signal of overbought or oversold conditions. This ambiguous technical situation complicates decision-making for traders seeking optimal entry points.
In this uncertain context, experienced traders favor a cautious approach based on risk management rather than aggressive speculation. The absence of major bullish catalysts and the silence of whales argue for an observation position, at least in the short term.
Psychological support levels nonetheless remain closely watched by the crypto community. A reactivation of large holder activity could quickly reverse market sentiment and trigger a new bullish movement. Conversely, a breakdown of current support levels with volume could pave the way for a more pronounced technical correction.
Portfolio diversification remains the most rational strategy under these market conditions. Savvy traders avoid concentrating their exposure on a single asset, particularly on meme coins whose valuation relies more on sentiment than on solid economic fundamentals. Money management and strict adherence to stop-loss orders become essential for navigating this period of heightened volatility.
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