Dogecoin’s whale sentiment has recently shifted, which has increased buying pressure and could drive prices higher.
It is important to watch the movements of whales, especially as Dogecoin is currently facing critical price ranges and resistance levels.
In recent days, the price of Dogecoin has fluctuated greatly. On November 23, the price fell to $0.36 due to the reduction of holdings by major whales.
However, the price of Dogecoin has now rebounded to $0.40, showing a change in market sentiment. This new wave of buying, combined with some technical indicators, also suggests that Dogecoin may see a price rebound.
Whale activity and its impacts
According to Santiment data, when the price of Dogecoin fell to $0.36, whales' holdings decreased from 10.59 billion to 10.39 billion. This sell-off increased market pressure and caused prices to fall.
However, whales subsequently resumed their holdings, adding approximately 200 million DOGE. Based on the current price of $0.42, this purchase is worth approximately $84 million.
This new round of buying pressure is gradually easing the previous selling pressure and driving market sentiment to a bullish turn. This change in whale activity shows that the market's confidence in DOGE's rise again is increasing, and their behavior is undoubtedly an important driving force behind the Dogecoin price rebound.
On the technical side, the bullish momentum of Dogecoin has also become more obvious, especially the ADX indicator has surged to 68.00, confirming the current strong upward trend. This reading shows that the upward trend of Dogecoin has been formed, and if the market continues to support it, breaking through the key level of $0.40 may be just around the corner.
However, the $0.43 resistance level has been a challenge for Dogecoin, and the price has failed to break through this level on a sustained basis, indicating a slowdown in the upward momentum. At the same time, the decline in trading volume also reminds investors to remain cautious, as sustained buying interest is essential to drive DOGE up.
From a downside perspective, the $0.36 support level remains an important line of defense for bulls. If selling pressure intensifies, this support level may provide room for a rebound. Market participants need to pay attention to changes in trading volume to determine whether the price will break through the resistance level or retest the support level.
Dogecoin Price Outlook: Key Scenarios and Market Drivers
The future price trend of Dogecoin will be affected by whale activity and the overall market environment. If market sentiment remains positive and whales continue to increase their holdings, Dogecoin may move towards $0.48 in the short term after breaking through the $0.43 resistance level.
If buying interest and positive sentiment remain in place for a long time, it may even reignite market expectations for Dogecoin to break through $1.
However, if whales start selling, or market support weakens, Dogecoin could face downward pressure, with the price potentially falling back to $0.32. A break below this level could increase downside risks, weakening the recent bullish momentum.
Therefore, traders should pay close attention to whale movements and key price levels to stay ahead of these evolving market risks.