DOGE ETF Buzz Fades as Whales Dump Holdings

Dogecoin (DOGE) Faces Selling Pressure Amid ETF Launch

Despite the anticipated launch of a US-listed Dogecoin ETF this week, the leading meme coin, Dogecoin (DOGE), is struggling to maintain upward momentum.

On-chain data indicates a decrease in whale participation and an increase in selloffs across exchanges, suggesting a possible price decline in the coming days.

Whale Activity Declines

The market is eagerly awaiting the launch of Rex-Osprey’s Dogecoin ETF (DOJE), expected to provide traditional investors with direct exposure to Dogecoin's price movements. However, DOGE's price performance has been subdued, reflecting a lack of strong trader enthusiasm.

According to Nansen, a blockchain analytics platform, whale accumulation has slowed significantly in the past week. Large investors holding over $1 million in DOGE have reduced their holdings by more than 4%, signaling skepticism toward the ETF narrative.

Reduced accumulation by large holders indicates a potential bearish shift. Decreased demand from these key players can lower buying pressure, potentially leading to price stagnation or declines.

Exchange Inflows Suggest Selling Intent

Furthermore, Dogecoin's exchange reserve has risen steadily, suggesting more traders are moving DOGE to exchanges to sell. The exchange balance now sits at 28 billion DOGE, a 12% increase over the past seven days, according to data from Glassnode.

A rising exchange balance implies that holders are preparing to sell, increasing the available supply and potentially putting downward pressure on DOGE's price if demand doesn't keep pace.

Potential Price Decline for Dogecoin

While the ETF launch could still act as a catalyst, current on-chain data suggests traders are bracing for further weakness rather than a rally. Should this trend continue, DOGE's price may attempt to breach the support level at $0.2583.

If this support breaks, the price could fall further toward $0.2018.

Conversely, increased demand could invalidate this bearish outlook. Bulls could trigger a surge above $0.2980 if they regain market dominance.