- Dogecoin whales have offloaded hundreds of millions worth of DOGE, signaling bearish sentiment.
- On-chain data shows falling open interest, fewer whale wallets, and collapsing daily active addresses.
- Technicals warn of a breakdown from a rising wedge, with downside targets as low as $0.12.
Dogecoin has taken a sharp turn downward after hitting its multi-month high of $0.28 on July 21. The memecoin has since slipped more than 24%, now trading around $0.2221, and the moves of its largest holders aren’t inspiring confidence. Whale wallets have been unloading significant amounts of DOGE during the drop, suggesting risk aversion and little faith in a near-term rebound.
On-Chain Dogecoin Data Shows Weakening Investor Demand
Investor interest appears to be fading fast. Futures open interest (OI) has dropped from a July 22 peak of $5.35 billion down to $3.24 billion, an 8% slide in just days. That decline signals traders stepping back from speculative bets on short-term gains. Santiment data also shows a 6% decrease in wallets holding $10–$100 million worth of DOGE since late July, further underscoring the exit of major players.
Dogecoin Network Activity Hits Yearly Lows
The fundamentals on-chain aren’t helping either. Dogecoin’s daily active addresses have collapsed to just 58,000. That’s a massive drop from 674,500 in July and a far cry from the 1.65 million peak seen in late 2024. This shrinking engagement suggests waning retail interest, which is critical for a memecoin that has historically relied on community participation to fuel rallies.
Dogecoin Technical Analysis: Rising Wedge Pattern Signals 45% Price Drop
From a technical standpoint, DOGE looks shaky. The price is retesting support at the lower trendline of a rising wedge pattern around $0.218. Rising wedges typically indicate a bearish reversal, where bulls steadily lose momentum. If support breaks, the technical target sits all the way down near $0.12—about 45% below current prices.
Momentum indicators back up the bearish case. The Relative Strength Index (RSI) has slid to 49 after recently hitting an overbought 85 on July 20. Unless DOGE can hold the $0.19–$0.20 zone—anchored by its 100-day and 200-day moving averages—it risks further losses toward $0.16 before any chance of stabilization.
