- Analysts spot a similar technical pattern to Dogecoin’s 2020 rally, fueling hopes of another major breakout despite current declines.
- Over 570 million DOGE dumped by whales in a week sparks bearish sentiment and highlights weak investor confidence.
- DOGE trades below key EMAs with no reversal in sight, though $0.142 acts as a critical support for potential recovery.
Despite Dogecoin’s recent decline, a familiar pattern emerging on its weekly chart has stirred optimism among crypto watchers. A prominent data analyst in the crypto space, known by the pseudonym “Cantonese Cat” (@cantonmeow), published a three-panel composite chart that bears striking similarities to the setup seen just before Dogecoin’s explosive rally in 2020–2021.
It shows Dogecoin’s price action, the Global M2 Liquidity Index, and WaveTrend/Weighted Trend Oscillator (WTO), shared on Friday via social media platform X. The analyst believes that the structure of the pieces, when combined, is akin to that which predicated DOGE’s vertical upsurge in late May, 2020, topping out at $0.74 in May, 2021.
The top panel of the chart showcases weekly candles stretching from 2017 to mid-April 2025. Dogecoin is trading at $0.154 as of now, a 68% slide from the year’s peak of $0.484 in December 2024. Also included in the chart is a hand drawn black arc that depicts the current pullback from late December to April as well as an arrow toward a bottom forming in the $0.13 area. Notably, it was very similar to the particular visual motif introduced by Cantonese Cat in late 2020 that preceded DOGE’s wildly upward run.
Dogecoin Faces Persistent Bearish Pressure Amid Declining Whale Activity
On daily and weekly technicals, the downward pressure remains in place against Dogecoin (DOGE), being the meme coin that could not go high enough. While not confirming a technical uptrend, whale activity and investor confidence are on the verge of breaking, indicating the bearish trend that has persisted through 2025.
Well known crypto analyst Ali Martinez notes that major DOGE holders have dumped more than 570 million of Coinbase’s DOGE in the past week alone. The reduction in whale holdings of Dogecoin resulted in amplified bearish signals and Dogecoin holders refrain from making any move.
Increased DOGE supply in the market is a result of the decline in whale activity which can lead to further price depreciation. Makers of market analysts also note that this would imply the growing negative sentiment and the rising liquidity concerns across the DOGE ecosystem.
The last data on Dogecoin shows that it is trading at $0.15727 with an intraday decline of 1%. Also, the fall in the daily trading volume by 25% is a testament to the bearish trend, as it has also been prevailing. However, setbacks do not alter the bullish expectations of the DOGE community in a long term, the token may walk uphill.
Dogecoin Faces Bearish Momentum Amid Key Technical Indicators
On the daily charts, dogecoin is in a bearish trend due to it being below both the 50 day and 200 day Exponential Moving Averages (EMA). However, a bearish crossover has also taken place since the 50 day EMA at $0.182 is below the 200 day EMA at $0.224, adding to negative market sentiment.
Currently, DOGE is witnessing the bearish pressure on daily as well as on the weekly timeframes. Technical indicators suggesting more weakness are out, no indications of pending reversal in the trend at the moment. The 200 day EMA, $0.142, is acting as a support level on the weekly chart. If DOGE can rally from this point and overcome the 50 day EMA it could trigger a bullish rally. On the contrary, if the current support level is broken down, there may be a deeper price decline.
