Leading meme coin Dogecoin (DOGE) has struggled to gain momentum despite excitement surrounding the anticipated launch of a US-listed Dogecoin ETF this week.
On-chain data reveals a decline in whale participation and a general uptick in coin selloffs across exchanges, hinting at the possibility of a deeper price pullback in the coming days.
DOGE Faces Decline as Whales Hold Back, Traders Sell
The market is anticipating the launch of Rex-Osprey’s Dogecoin ETF (DOJE) tomorrow, which is expected to give traditional investors direct exposure to Dogecoin’s price movements.
However, DOGE’s price performance has remained muted ahead of the milestone, signaling a lack of enthusiasm from traders.
According to on-chain analytics platform Nansen, whale accumulation has slowed notably over the past week. Large investors, with wallets containing DOGE coins worth more than $1 million, appear unconvinced by the ETF narrative and have reduced their holdings by over 4% in the past week.
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When large holders reduce their accumulation, it signals a bearish shift in market sentiment. This reduced DOGE demand from significant players can lead to decreased buying pressure, potentially resulting in price stagnation or declines in the near term.
Furthermore, DOGE’s exchange reserve has risen steadily in the past week, suggesting that more traders are transferring DOGE to exchanges with the intent to sell. As of this writing, the altcoin’s exchange balance sits at 28 billion DOGE, climbing by 12% in the past seven days.
A rising exchange balance indicates that holders are moving their assets to trading platforms to sell rather than to hold. This influx of coins onto exchanges increases the available supply in the market, which can put downward pressure on DOGE’s price if demand does not keep pace.
DOGE Could Slide Toward $0.20 if Support Breaks
While the ETF launch may still provide a catalyst, current on-chain readings suggest that traders are preparing for further weakness rather than a breakout rally. If this plays out, the meme coin’s price could attempt to breach the support floor formed at $0.2583.
A breach of this level could lead to a further drop toward $0.2018.
However, an uptick in new demand for DOGE would invalidate this bearish outlook. The bulls could trigger a spike above $0.2980 if they regain dominance.
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