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The OG meme coin has fared poorly over the past several months, dropping out of the elite top 10 crypto club.
While some market observers remain optimistic that a recovery could be on the way, recent whale behavior suggests that a deeper collapse is also plausible.
$DOGE Whales ‘Paying Rent’
The popular analyst Ali Martinez revealed that 420 million coins have been distributed by such large investors over the past seven days. As of current rates, the USD equivalent of this stash is around $35 million, while whales now collectively own nearly 35 billion $DOGE, 22.7% of the token’s circulating supply.
The development doesn’t guarantee that the meme coin’s price is headed for further decline, but it signals that these investors are preparing for such a scenario.
Some believe these market participants are experienced players who may have access to inside information, enabling them to position themselves effectively ahead of major moves. In any case, their actions are closely monitored by retail investors, who could follow suit, thereby intensifying the sell-off.
Others took a more humorous approach to explaining the recent behavior. X user Lynor, for instance, said that $DOGE whales cashed out so they can “pay rent this week.”
Time to Rally?
Martinez has been quite vocal on $DOGE lately, and his previous comments were quite optimistic. Earlier in June, he disclosed that the Tom DeMark Sequential indicator flashed a buy signal on the asset, suggesting a rebound could be on the way. It’s worth mentioning that this technical tool accurately predicted the meme coin’s pullback in early May, when the valuation dropped from $0.113 to $0.078.
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Later on, the analyst paid special attention to $0.081, classifying it as “the lower mid-range boundary” of a five-year parallel channel dating back to 2021. He argued that holding above that level could open the door for another “parabolic move.”
$DOGE’s Relative Strength Index (RSI) supports the bullish scenario. The ratio has fallen to 30, meaning that the asset has entered oversold territory and could be due for a resurgence. The technical analysis tool ranges from 0 to 100, with anything above 70 considered a warning of a possible correction.
Last but not least, we will take a look at $DOGE’s exchange netflow. Over the past several weeks, outflows have surpassed inflows, reflecting a growing investor preference for self-custody – a trend that naturally reduces immediate selling pressure.
