Is Dogecoin Price About to Crash? Whale Sends 70 Million DOGE to Binance

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Michael Davis

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Michael Davis

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Crypto market analyst & on-chain data enthusiast. Breaking down trends, narratives & cycles in BTC, alts, and macro. 🧠 Deep dives, smart money moves & alpha for the coming bull run. Stay ahead of...

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Last updated: 

January 7, 2025

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The Dogecoin (DOGE) price could be on the cusp of a massive price crash, as blockchain data reveals an uptick in Whales sending their tokens to major exchanges.

Per Whale Alert, a massive Dogecoin whale transferred more than 70 million DOGE to Binance on Tuesday, presumably to sell them for fiat.

The Dogecoin price, last around $0.3350, is now down close to 20% from earlier weekly highs in the $0.40 area.

Crucially, DOGE is for now holding to the north of its 21DMA, after dropping below its 50DMA earlier in the week.

But risks seem tilted toward Dogecoin dropping back to test its mid-December lows at $0.26.

Macro headwinds are growing, as US long-term bond yields push higher in wake of strong US data that complicates the outlook for Fed policy.

Friday’s jobs report could further weigh on the market if it puts the Fed in a further bind, and that could again hit the Dogecoin price.

Morevoer, technicals are painting a concerning picture. Dogecoin’s failure to get back above its 50DMA after dropping sharply below it in mid-December is a sign the bears remain in control of this market.

And this month’s lower peak versus December’s highs could be the sign of a concerning new pattern of Dogecoin consistently posting lower highs.

If support in the $0.30 area goes, Dogecoin could be in for a sharp decline.

But should investors use any such drop as an opportunity to buy the dip?

Dogecoin to Crash Under $0.30 – Buy the Dip?

As macro headwinds build, the potential for DOGE to drop below $0.30 is very high. This would give investors the chance to bag the leading meme coin as much as 40-50% below its recent highs.

But would buying the Dogecoin price dip be a good idea?

Well, its true that the macro backdrop for risk assets could be challenging in 2025. Risks seem tilted towards tighter financial conditions (higher yields, less Fed rate cuts etc) than towards easier financial conditions (more rate cuts, lower yields) right now.

So 2025 is unlikely to look like 2021, a year defined by massive Fed stimulus (zero interest rates and QE) and US government stimulus cheques.

But that doesn’t mean 2025 can’t be a great year for the Dogecoin price.

The incoming Trump administration is expected to usher in a new golden era for the US crypto industry and market’s more broadly.

And Dogecoin is set to play a special role here – Trump’s administration will introduce a brand new government administration called the Department of Government Efficiency (D.O.G.E.), of which Dogecoin is the mascot.

2025 is set to be a record year for crypto adoption, with Dogecoin set to retain a leading portion of “mind share”.

That means that, despite the fact that 2025 is unlikely to be a year of central bank stimulus, price risks remain very much tilted to the upside for Dogecoin.

Price spikes back to prior record levels remain very possible. Though massive runs higher like seen in past cycles may have to wait until financial conditions have eased, which might be more of a 2026 story.

The fun new meme coin looks set to follow in the similar recent launch of the Pepe Unchained token, which saw presale investors who timed the post-launch top well bag gains of as much as 7x.

cryptonews.com‘s in-house presale analyst Crypto Chester recently released included the new meme coin in his top picks of projects with 50-100x potential.