Dogecoin (DOGE) has struggled to recover from its recent losses, with demand slowing in recent days. With 2024 coming to a close, many investors are opting to avoid the volatility associated with this transitional period.
This could leave DOGE vulnerable to further price declines unless market activity resumes.
Whales are the hope for Dogecoin
Dogecoin whales are playing a crucial role in preventing the cryptocurrency’s price from falling further. Transactions over $100,000 surged to 9,410 — the highest level since November 2021. This resurgence in high-value transactions indicates strong activity from large players, which has historically been instrumental in stabilizing the price during volatile periods.
If whales maintain their current levels of activity, they could provide the liquidity and market support needed to protect DOGE from further declines.
However, this support must be sustained as broader investor participation remains low. A steady flow of high-value transactions is essential to regain equilibrium.
Dogecoin Large Transactions. Fonte: IntoTheBlock
Dogecoin’s Chaikin Money Flow (CMF) indicator is hovering around the neutral line, signaling minimal inflows into the market. This suggests that investors remain cautious, possibly due to uncertainty in broader market conditions or waning interest.
The lack of significant inflows reflects hesitation among market participants. Without a notable increase in buying pressure, the macro momentum could weaken further, leaving it dependent on whale activity and external catalysts to sustain its price levels.
Dogecoin CMF. Fonte: TradingView
Price prediction
DOGE is currently trading at $0.32, a level that it is attempting to establish as a floor of support. Securing this level is crucial for the memecoin to recover from its recent 32% drop to $0.46. Holding this support could signal a potential shift in investor sentiment.
The next target is to flip $0.36 into support and continue its uptrend towards $0.40. Reaching this milestone would restore confidence in the cryptocurrency, paving the way for sustained growth and increased market activity.
Dogecoin Price Analysis. Fonte: TradingView
However, failure to secure $0.32 as a support level could lead to a drop towards $0.28. Such a decline would invalidate the bullish outlook, leaving Dogecoin vulnerable to further losses. Monitoring these key levels will be critical for traders and investors in the coming days.
The article Can Whales Save Dogecoin (DOGE)? Analysis Answers appeared first on BeInCrypto.
