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ZyCrypto 2025-02-18 17:40:57

DOGE Whales Activity Declines 88% Amid Imminent Death Cross

Dogecoin (DOGE) traders are at a crossroads regarding the asset’s direction amid mixed market signals. In the last 30 days, meme coin growth has stalled following declining crypto prices as sentiments dropped. However, during the downtrend, DOGE price showed periods of growth sparked by Elon Musk’s influence and whale activity. With stretched periods of low trading, many traders have pointed to negative metrics. Death Cross Threatens DOGE Bulls On-chain factors show an 88% decline in DOGE whale volumes over the last 60 days. This portrays present market conditions, with massive meme coin gains wiped out. Amid bear factors, the positions of the asset’s 50-day and 200-day moving averages are closely approaching a death cross. This typically occurs when the 200-day EMA moves below the 50-day EMA. Investors fear this will trigger new lows for the assets alongside recent headwinds. Major concerns revolve around the delayed rebound after a death cross. The last two times Dogecoin marked a death cross, the price dipped 26% and 44%. If a similar movement occurs, gains recorded after the institutional rally will be lost. Last year, institutional appetite after the approval of spot Bitcoin ETFs drove investment in crypto assets. This had a positive impact on meme coins, which typically move with the wider market sentiments. With Bitcoin tapping new, all-time highs, Dogecoin holders anticipated a run above $1 at the cycle peak. However, this seems unlikely after a dip in crypto prices. Bulls Eye Market Rebound Meanwhile, crypto bulls continue to make a case for Dogecoin’s rebound amid present macro factors. The Market’s Value to Realized Value (MVRV) ratio is in the “opportunity zone” at -15%, which can mark a possible reversal, lowering sell pressure. Meanwhile, X user Caleb tipped more adoption for the asset. “ Dogecoin has an uncapped, predictable inflation model. 10,000 new coins per block. Miners can compete for rewards forever! Meaning, there will always be an incentive. (Bitcoin mining incentives will end!) Over time, the inflation rate decreases. Shrinking 3.3% per year. Making dogecoin more rare over time and yet abundantly available for dedicated community members willing to invest in mining.” Digital asset users also point to Donald Trump’s pro-crypto stance and Elon Musk’s role to spur trader confidence. The US President pledged to make the country the world’s crypto capital and has rolled out a decentralized finance project. Furthermore, the launch of TRUMP meme coins spiked sentiments in similar assets.

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