Dogecoin is trading without major fluctuations as the price surge has remained between $0.33 and $0.31 for over a week. This indicates a significant decline in volatility, thus traders' attention has shifted away from this token. Nevertheless, this token has attracted significant interest from whale players rather than market participants, as they have quietly accumulated over 90 million DOGE in the past few days.
This accumulation indicates that whales are trying to create a significant DOGE breakout by ramping up buying. Interestingly, these accumulations by whales seem not to hold the token for long, as they may soon trigger a substantial pullback. According to data from Coinglass, a large leveraged liquidation group has accumulated at $0.42 and then at $0.49.
Data shows that over $70 billion has been leveraged between $0.41 and $0.43, becoming a strong resistance level. Therefore, it seems that whales are seeking high liquidity areas to quickly execute short-selling trades around these levels. If the price can maintain and secure above these levels, the token may encounter another resistance level between $0.485 and $0.5, where more than $50 billion has accumulated.
The historical DOGE price chart shows that the token is repeating previous trends, but technical indicators suggest a varied trend, which is concerning. Although the price is drifting similarly to before, the MACD indicates decreasing buying pressure.
On the other hand, the accumulation of the token seems to have decreased with a slight increase in distribution. Therefore, this suggests a potential decline in the coming days, just below $0.3, which could attract a significant liquidation pushing the price towards higher targets.
Previously, when the price of Dogecoin triggered a breakout in 2021, the market shifted to a bullish trend and began a price surge. Therefore, it will be interesting to monitor whether history repeats itself and the potential impact of the breakout on the market.
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