Following strong gains over the past five weeks, the price of Dogecoin ($DOGE) is facing a short-term correction after retesting major resistance around 43 cents. The leading meme coin, with a fully diluted valuation of around $54 billion and an average daily trading volume of around $15.3 billion, formed a potential reversal pattern within four hours.
Dogecoin price has faced rejection at resistance around 43 cents twice in the past few days, forming a potential double top while the relative strength index (RSI) has seen a bearish divergence.
Dogecoin bullish sentiment ahead
From a macro perspective, the Dogecoin price is preparing to enter the most exciting phase of the 2024/2025 bull cycle. In addition, the meme coin leader has been forming higher highs and higher lows on the weekly timeframe since October last year.
On the shorter timeframe, Dogecoin price has established support above 35 cents, which could be the basis for the next move up to 90 cents. If support around 35 cents is likely to be breached, Dogecoin price should find strong support between 30 cents and 26 cents.
Whale investors are hunting
The Dogecoin network continues to attract more investors around the world, with over 5.3 million on-chain holders as of this report. The unwavering support of tech billionaire Elon Musk, who led to the creation of the Dogecoin initiative to make the U.S. government more efficient, has helped the meme coin attract more whale investors.
According to on-chain data analysis provided by Santiment, Dogecoin whales purchased 140 million DOGE units worth more than $56 million in the past 24 hours.
