Dogecoin trading has not seen significant changes, with the price range maintaining between $0.33 and $0.31 for over a week. This indicates a significant drop in volatility, leading traders' attention to shift significantly away from the token. Nonetheless, the token has attracted more interest from whales 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 achieve a massive breakout for DOGE through frantic buying. Interestingly, these accumulations by whales do not seem to involve long-term holding of the token, as they may soon trigger a significant pullback. According to Coinglass data, a large amount of forced liquidation leverage has accumulated at $0.42, later reaching $0.49.
Data shows that over $70 billion in leverage is between $0.41 and $0.43, which has become a strong resistance level. Therefore, whales seem to be looking for high liquidation areas to quickly execute short trades around these levels. If the price manages to maintain and stabilize above these levels, the token may encounter another resistance between $0.485 and $0.5, where over $50 billion has already been accumulated.
What happens next? Will the price of DOGE reach $0.5?
The historical price candlestick chart of DOGE indicates that the token is repeating its previous trend, but the technical indicators show different trends, which is concerning. Although the price deviation is similar to before, the MACD indicates a decrease in buying pressure. On the other hand, the token's accumulation seems to have declined, while the distribution level has slightly increased. Therefore, this suggests a potential drop in the coming days, slightly below $0.3, which may attract significant liquidation and push the price towards higher targets.
Previously, when the price of Dogecoin triggered a breakout in 2021, the market turned bullish and initiated a bull market. Therefore, it will be interesting to observe whether history repeats itself and the potential impact of the breakout on the market.
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