Whale activity is currently the primary driver of Dogecoin's significant increase in selling pressure. On July 23, the short-term moving average crossed below the long-term moving average, a pattern often seen as a bearish signal, leading to a sudden sell-off. On-chain metrics indicate an imbalance in bid and ask volumes, favoring sellers, with a noticeable rise in transaction volumes peaking on July 20, 2024.

The price decline has been accompanied by a significant increase in transaction volumes, aligning with whale accounts exerting more pressure to sell. In the last 24 hours, 5.73 billion DOGE has been moved, highlighting the current market state. Despite the short-term pessimistic outlook suggested by these metrics, the broader on-chain picture implies that Dogecoin might be nearing a reversal point.

Historically, strong selling pressure, especially from whales, often marks the beginning of a market bottom and a potential recovery. The relative strength index (RSI) on the Dogecoin chart is around the 50 level, indicating that the asset is neither overbought nor oversold. If buyers step in, this could signal an imminent trend reversal.

The moving averages present mixed signals, with the asset's ability to stay above critical support levels, such as the 100 EMA, and recent price action showing resilience above $0.125, indicating underlying strength despite the bearish trend suggested by the death cross. Dogecoin's market sentiment often defies conventional technical analysis due to its large and active community, leading to unexpected rallies.

The current situation underscores the importance of monitoring whale activity and on-chain metrics to understand potential market movements. While selling pressure is currently high, historical trends suggest that Dogecoin may be nearing a reversal point, making it essential for investors to stay informed and adapt to changing market conditions.