In just one day, 9.4 billion DOGE were moved, setting a new record for whale activity in the last 30 days. Dogecoin has seen a sharp increase in activity. The timing of this transaction surge is significant because DOGE's price recently broke through significant resistance levels and began to exhibit indications of a possible bullish reversal.
The current whale movement suggests that large holders are becoming more interested, which could lead to further price increases. Whales who own large amounts of a specific asset in bulk are usually institutional investors or other entities with significant market power. Their actions imply that more participants in the market may be placing bets on Dogecoin's sustained upward trend.
DOGE/USDT Chart by TradingView
Technically speaking, DOGE has just overcome the $0.12 resistance level, which represents the best result since July. Now that the price is trading above the 200 and 100 EMAs, the momentum is clearly favoring the bulls. The high volume of purchases suggests that there is strong confidence in Dogecoin even though the Relative Strength Index indicates that the cryptocurrency is approaching overbought levels. Whale purchases could further stabilize DOGE's price and drive it toward the next major resistance level, which is located around $0.14 if they continue in such large quantities.
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Technical strength plus whale activity raises the possibility of a longer-term trend reversal. Conversely, there is a chance that DOGE's price will drop precipitously if significant sell-offs occur after this whale activity. The price may retrace to its prior support levels around $0.11 or $0.10 if it is unable to stay above the $0.12 barrier. For the time being, though, it seems less likely that there will be a significant retracement given the current bullish signals.
