Whale activity is currently the primary driver of Dogecoin's significant increase in selling pressure. A recent bearish signal, known as a death cross, occurred on July 23, when the short-term moving average crossed below the long-term moving average. This event triggered a sudden sell-off, accompanied by a noticeable rise in transaction volumes, peaking on July 20, 2024.

On-chain metrics indicate an imbalance in bid and ask volumes, favoring sellers. In the last 24 hours, 5.73 billion DOGE has been moved, highlighting the current market state. Despite the short-term pessimistic outlook, the broader on-chain picture suggests that Dogecoin might be nearing a reversal point. Historically, strong selling pressure from whales often marks the beginning of a market bottom and 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. Mixed signals from moving averages and the asset's ability to stay above critical support levels, such as the 100 EMA, suggest underlying strength despite the bearish trend.

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 high, the possibility of a reversal cannot be ruled out.

In conclusion, whale activity is driving Dogecoin's selling pressure, but a reversal is possible. The broader on-chain picture and historical trends suggest that the current selling pressure might mark the beginning of a market bottom. Monitoring whale activity and on-chain metrics is crucial to understanding potential market movements in Dogecoin's unique and community-driven market.