The last 24 hours haven’t been great for Dogecoin, with the memecoin down by less than a percent. In comparison, some of the market’s other popular, but low-capped memecoins have outperformed it on the price charts.
While whales were accumulating WHITEWHALE, among other AI-themed memecoins, their activity was different on DOGE. Will the launch of the 21Shares Dogecoin ETF help reverse a potential price breakdown?
Will whales’ redistribution ignite breakdown?
According to popular analyst Ali, whales have redistributed about 410 million DOGE tokens since last week. Right now, they hold slightly more than 17.34 billion DOGE – Also a significant position.
These figure mean that sell pressure has bee building for a while for the most capped memecoin. In fact, this could indicate a shift to reposition funds into new wallets for long-term holding.
In case the event was a potential sale, the same was evident on the charts too. For instance, the bearish pennant pattern, as analyzed by Trader Tardigrade, elicited the potential to bring the price of DOGE down to $0.108.
The bear signals are not the only things to look at for Dogecoin though. Instead, trading activity could skyrocket as more users get exposed to the popular memecoin.
Will the DOGE ETF news have any impact?
The aforementioned redistribution follower the launch of the 21Shares Dogecoin ETF with the ticker (TDOG) on Nasdaq this week. This was approved by the Securities and Exchange Commission (SEC) and backed by the Dogecoin Foundation. The approval has made it an asset class, rather than just a meme.
Hence, more trading activity can be expected since it would lure in traditional investors. There will be a further increase in activity following the launch of more DOGE ETFs on Wall Street. Especially since there will be subject to stricter regulations than simply trading on crypto exchanges.
That’s not all either as Shopify has started to allow its customers to use Dogecoin after integrating Coinbase into their payment methods.
Such developments have countered the sell pressure from whales’ redistribution so far. Hence, the question – Will the price continue to hold above the broken descending resistance?
What do the price charts say?
At the time of writing, Dogecoin’s price was trading above a trendline as a potential retest of the breakout. Bouncing from the $0.1243-level would propel DOGE towards levels seen in 2025 – Above the $0.30-mark.
However, the MACD was still bearish, though the momentum was fading with signal lines nearing crossover. Still, the Cumulative Volume Difference (CVD) was negative with a reading of $1.27 million. This implied that bears had greatly reduced their sell orders.
Looking at the bigger picture, Dogecoin is still in a bear structure right now. If market bulls continue to make inroads and given the launch of the 21Shares Dogecoin ETF, odds are the memecoin’s recent price weakness might reverse itself.
Final Thoughts
- Whales redistributed about 410M DOGE, indicating potential sell pressure.
- 21Shares DOGE ETF trading on Nasdaq could help reverse memecoin’s price weakness.
