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Dogecoin price tumbled towards $0.12 on July 30, reflecting a 12% decline in the last 3-days, on-chain data shows many short-term traders are now seeking to exit their DOGE positions, raising concerns about a potential reversal below $0.10.
DOGE Price Dips 12% Amid BTC, ETH Rally
Dogecoin price has been locked in a steep downtrend over the past week. The world’s largest memecoin’s underwhelming performance has persisted despite bullish tailwinds from Donald Trump’s speech at the Bitcoin Nashville conference.
The chart above shows how the Dogecoin price downtrend began when bears triggered correction from the monthly timeframe peak of $0.143 recorded on July 21. At the time of writing on July 30, DOGE price is currently trading at $0.12, reflecting an 11.83% decline over the past week.
But curiously, other major assets in the top 15 crypto market rankings, such as Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH), have registered significant gains, DOGE has remained stagnant. This stagnation has sparked speculation that Dogecoin short-term are becoming increasingly impatient and may soon exit DOGE in favour of assets generating more traction.
Dogecoin Facing a $92 Million Sell-Wall
Having experience 12% downsizing over the past 7 days, short-term traders are now looking to offload large volume of DOGE. Data from IntoTheBlock’s Exchange Order Books confirms this bearish outlook for DOGE.
The Exchange Order Books, which compare the flow of buy and sell orders, indicate that DOGE traders have placed sell orders for over 730 million DOGE at an average price of $0.12, representing a looming sell-wall worth over $92 million.
In contrast, prospective buyers have only placed orders for 380 trillion DOGE, indicating an excess market supply of about 2.5 trillion DOGE.
According to the cardinal laws of demand and supply, when the market supply of an asset exceeds demand, it exerts downward pressure on prices. Additionally, other rival coins such as PEPE, XRP, and BCH have outperformed Dogecoin over the past week.
This rare market dynamic could encourage short-term sellers bring down asking prices, in a bid to rapidly exit DOGE and re-allocate capital towards better-performing assets.
If this scenario plays out, Dogecoin price could be at risk of losing the $0.10 support level in the days ahead.