Dogecoin Whales Sell 440M Tokens Amid Price Decline

The Dogecoin market is witnessing a significant shift in whale behavior, with major holders collectively shedding 440 million DOGE tokens valued at $81.4 million within a narrow 72-hour window. This substantial liquidation comes from wallets holding between 10 million to 100 million DOGE, representing investors with portfolios ranging from $1.8 million to $18 million at current prices. The scale of these transactions qualifies them as whale-level activity, making their movements particularly noteworthy for market observers.

Analyst Ali Martinez highlighted this trend using Santiment’s Supply Distribution metric, which tracks the total DOGE holdings across different wallet size categories. The sharp decline in whale holdings represents one of the most significant distribution events in recent months, suggesting that large investors are taking profits or reducing exposure to the memecoin. Given that these whales collectively control substantial portions of DOGE’s circulating supply, their selling activity can create meaningful market impact.

The timing of this whale exodus aligns with Dogecoin’s recent price decline, with the cryptocurrency dropping nearly 6% over the past week. While whale behavior doesn’t always directly dictate price movements, the correlation between the substantial selling and DOGE’s downward trajectory suggests these large holders may be contributing to the current market pressure. The $81.4 million worth of DOGE entering the market creates additional supply that must be absorbed by buyers, potentially overwhelming demand at current price levels.

Concurrent with the whale selling pressure, Dogecoin is testing crucial technical levels that could determine its near-term price trajectory. Martinez’s analysis reveals that DOGE has been trading within an ascending channel pattern on the 12-hour timeframe, characterized by parallel upward-sloping trendlines. The lower boundary of this channel, serving as critical support, sits at approximately $0.18—a level that has become the focal point of current market attention.

Following the whale distribution, DOGE briefly dipped below this $0.18 support level on Thursday before recovering above it on Friday, indicating both vulnerability and resilience in the current market structure. This retest of support amidst significant selling pressure underscores the importance of this technical level. At the time of writing, Dogecoin was trading around $0.185, hovering precariously near this make-or-break threshold.

Martinez emphasized the significance of maintaining this support level, noting that successful defense by bullish investors could pave the way for substantial upside movements. The analyst identified clear price targets of $0.25 and $0.33 should DOGE hold above the $0.18 support and resume its upward trajectory within the ascending channel. However, failure to maintain this level could trigger further declines as technical traders exit positions and additional selling pressure emerges.

The combination of technical vulnerability and whale distribution creates a concerning picture for Dogecoin’s near-term prospects. Whale movements often serve as leading indicators of market sentiment among sophisticated investors, and the current selling spree suggests diminishing confidence among those with the largest stakes. The 440 million DOGE liquidation represents not just a numerical reduction but a psychological shift that could influence smaller investors’ decisions.

Santiment’s Supply Distribution metric will remain crucial for monitoring whether this whale exodus represents a temporary profit-taking event or the beginning of a more sustained distribution phase. The direction of this metric in coming days will provide valuable insights into whether large holders are merely trimming positions or fundamentally reassessing their Dogecoin exposure. Historical patterns suggest that sustained whale selling often precedes broader market downturns.

For market participants, the current situation presents a critical juncture. The battle between whale selling pressure and technical support at $0.18 will likely determine Dogecoin’s direction in the short to medium term. While Martinez’s analysis suggests potential upside to $0.25-$0.33 if support holds, the substantial whale distribution introduces significant headwinds that could challenge any recovery attempt. Investors should closely monitor both on-chain whale activity and price action around the $0.18 level for clearer directional signals.