Shocking! Dogecoin whales spend $200 million to buy in! Could DOGE break through $0.43?
The price of Dogecoin [DOGE] has been highly volatile in recent days, dropping to $0.36 on November 23 due to major whales reducing their holdings.
However, at the time of writing, Dogecoin's trading price is $0.38, reflecting a change in market sentiment as these major stakeholders resume purchasing. This new accumulation, along with other technical indicators pointing to bullish momentum, may suggest that the price of Dogecoin is preparing to rise again.
When the price of Dogecoin dropped to $0.36, whale holdings fell from 10.59 billion to 10.39 billion. This sell-off increased market pressure, triggering a price drop.
However, whales have since resumed accumulation, adding approximately 200 million DOGE, valued at $84 million based on the current price of $0.42.
This new buying pressure is alleviating the sell-off pressure and fostering bullish sentiment. The shift in whale activity indicates growing confidence in the potential for DOGE to rise again, and their actions are a key driving force behind the token's price recovery.
However, the resistance level at $0.43 has proven challenging, and the cryptocurrency has failed to maintain momentum above that level. The decrease in trading volume also suggests that caution is warranted, as sustained buying interest is crucial for driving DOGE higher.
On the downside, the support level at $0.36 remains a critical safety net for bulls, providing room for a rebound if sell-off pressure increases. Market participants should closely monitor trading volume trends to assess the likelihood of a breakout or a retest of the support level.
The future price movement of Dogecoin largely depends on whale activity and the broader market conditions. In a bullish scenario, if whales continue to accumulate and Dogecoin successfully breaks through the resistance level of $0.43, it could rise to $0.48 in the short term.