Dogecoin is testing a key level after a 22% drop that took the price down to the $0.10 mark. This critical area has become a turning point for the popular meme coin that could either spark a new rally or lead to a deeper pullback.
Despite the recent decline, investors remain optimistic and are closely watching price action for signs of a breakout. This bullish outlook, citing key whale activity as a positive indicator.
Notably, whales bought heavily during Dogecoin’s recent decline. Such accumulation by large holders is often seen as a bullish sign, indicating confidence in a future price rebound.
With Dogecoin hovering around this key support level, the next few days will be crucial for Dogecoin and the broader cryptocurrency market.
Big players buy Dogecoin
Sentiment around Dogecoin has changed dramatically in just a few days, from extremely bullish to anxious and even bearish. Since mid-September, Dogecoin has surged a staggering 33% on the back of renewed interest and positive momentum. However, since last week, Dogecoin has fallen back to trading levels prior to the surge, causing concern among analysts and investors. Despite the market downturn, there is still hope for a bullish reversal, especially for those keeping a close eye on on-chain indicators. Key data shows an increase in activity from large holders, or whales, a signal that has historically preceded market rallies.
Dogecoin whales have purchased more than 1 billion Dogecoins in the past 24 hours, totaling approximately $108.7 million. This large accumulation during a period of high volatility suggests that "smart money" is preparing for an upcoming price surge.
Dogecoin whale activity shows that Dogecoin has accumulated 1 billion on the 24-hour chart.
Typically, whale buying precedes big rallies, as these large players tend to stockpile during times of market volatility and uncertainty. If this trend continues, Dogecoin could soon rise again. While the recent correction has raised some doubts, whale activity provides a bullish outlook for those who are still betting that Dogecoin will rise to new highs.
DOGE Price Trends
Dogecoin (DOGE) is currently trading at $0.107, down 22% from last week’s high of around $0.13. The decline brings the price to a critical point as it tests the 4-hour 200 exponential moving average (EMA) at $0.108, which is a key resistance level. Importantly, DOGE remains above the 200 moving average (MA) at $0.105, providing some support for bulls.
DOGE tests 4H 200 EMA.
To regain bullish momentum, Dogecoin must break above the 4-hour 200 EMA and reclaim the $0.12 mark, which would suggest a possible continuation of the uptrend. Conversely, if the price fails to break above these resistance levels, a deeper correction could occur, with demand targets dropping to around $0.088. As the cryptocurrency market continues to be volatile, traders and investors alike will be keeping a close eye on Dogecoin’s price action. The next few trading sessions will be crucial as to whether Dogecoin can gain enough strength to break above these key levels or if it will continue to experience downward pressure.
In the world of cryptocurrency, which is full of uncertainties, we must remain calm and rational in order to move forward steadily in the storm.
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