Right now whale activity is the main factor driving a notable spike in selling pressure for Dogecoin. The short-term moving average crossed below the long-term moving average on July 23б which is usually interpreted as a bearish signal.

This sudden sell-off followed the death cross. The bid and ask volumes are noticeably out of balance, with the balance leaning toward sellers, according to the on-chain metrics. Price declines have been accompanied by a noticeable rise in transaction volumes. It is clear from the given charts that Dogecoin’s substantial transaction volumes have increased peaking on July 20, 2024, with 1032 transactions over a seven-day period.

This extra activity is consistent with whale accounts increasing pressure to sell. A significant amount that highlights the current state of the market is the 5.73 billion DOGE that has been moved in the last 24 hours.

The wider on-chain picture implies that Dogecoin might be nearing a reversal point despite the short-term pessimistic outlook suggested by these metrics. In the past, strong selling pressure — particularly from whales — often marks the beginning of a market bottom and a possible recovery.

The relative strength index, or RSI, on the Dogecoin chart is circling the 50 level, suggesting that the asset is neither overbought nor oversold. If buyers intervene, this could signal that a trend reversal is imminent. The moving averages also display a mixed signal.

The asset’s ability to maintain above critical support levels such as the 100 EMA, and the recent price action, which shows resilience above $0.125, could indicate underlying strength even though the death cross indicates a bearish trend.

Because of its sizable and vibrant community, Dogecoin’s market sentiment frequently defies conventional technical analysis conventions, resulting in unanticipated rallies.