Dogecoin Faces Pressure as Long-Term Holders Liquidate Assets

As we move into November, Dogecoin's recent price rebound is showing signs of weakness, with a mere 1.2% increase. Currently, DOGE is down 5.9% over the last week and has plunged nearly 27% this month. Alarmingly, on-chain indicators reveal a growing trend of selling.

The pressing question now is whether Dogecoin's support level at $0.17—maintained since October 11, even amidst bearish fluctuations—can withstand the selling pressure from long-term holders.

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Cost Basis Heatmap: The Critical Support Zone

Recent on-chain cost basis data pinpoints Dogecoin's primary short-term support between $0.177 and $0.179, where approximately 3.78 billion DOGE were accumulated in the past.

This price range marks where the bulk of long-term holders have their holdings, serving as a significant buffer during previous sell-offs.

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The cost basis heatmap illustrates where the majority of investors last acquired their tokens, highlighting price ranges with dense concentrations of long-term holders that function as support or resistance levels.

However, this protective buffer is rapidly deteriorating. Data from Glassnode indicates a sharp shift in the Hodler Net Position Change—tracking the activity of long-term wallets—flipping to a negative trend on October 31. This metric saw a dramatic drop from an inflow of +8.2 million DOGE to an outflow of -22 million DOGE in just 24 hours, representing a staggering 367% reversal in holder sentiment.

This trend suggests that even long-term holders are beginning to sell off their assets. If this behavior persists, it could erode the $0.177-$0.179 support cluster, leaving Dogecoin's most robust support level since early October vulnerable to further declines.

Should the price drop below $0.17, the next significant support level does not appear until $0.14, creating a substantial gap that could lead to further losses. More on this in the subsequent section.

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Potential Death Cross Could Intensify Price Decline

As the situation unfolds, traders are also wary of a looming death cross, a technical indicator that occurs when a short-term moving average crosses below a long-term moving average. This signal is often viewed as a bearish indicator, and should it materialize, it may accelerate the downward momentum for DOGE.

The market remains on edge as long-term holders continue to exit, and the viability of Dogecoin's recent support levels is now in question. The coming days will be crucial in determining whether the $0.17 floor can withstand the pressure or if a deeper decline is imminent.

In summary, Dogecoin's resilience is being tested as long-term holders liquidate their positions, and the indicators suggest a challenging road ahead for the popular altcoin.