Dogecoin Price Struggles at $0.20 Support Amid Whale Selloff and Futures Liquidations

Dogecoin is currently struggling to maintain the psychological $0.20 support level. Large investors have been offloading their holdings, contributing to a decline of over 2% this week. On-chain data reveals that whales have sold more than 500 million DOGE tokens recently, intensifying fears of further price drops. This selloff is accompanied by a significant 61% decrease in futures open interest, indicating liquidations and trader fatigue. Derivative market data shows a decrease in trader participation, with many closing long positions. Despite this, Dogecoin's 24-hour trading volume has increased, suggesting sellers are still dominant. Technical indicators are also signaling caution, with a potential "death cross" forming on the daily chart. Analysts warn of a potential drop to the $0.166 support if selling pressure persists. However, this level has historically led to strong rebounds, offering some optimism. The price is currently consolidating near $0.20, facing resistance between $0.204 and $0.210. A break below $0.19 could lead to further losses. The future direction of Dogecoin depends on whale distribution patterns and new buyer demand.