As the holiday season ignites optimism across the crypto market, Dogecoin ($DOGE ) has caught the attention of whales—large holders who often influence price trends. In the last 96 hours, whales have acquired a staggering 270 million DOGE, worth approximately $89.64 million at current market prices. This move has sparked speculation about potential developments in the Dogecoin ecosystem.
Whales Accumulating During Consolidation
The significant whale activity comes during a consolidation phase for Dogecoin, which followed a sharp sell-off that saw the price dip to $0.261 on December 20. Accumulations like this are often seen when prices are low, suggesting that whales are positioning themselves for a potential price rally or are confident in the coin’s long-term prospects.
This buying spree also coincides with Dogecoin's modest recovery, as the meme coin climbed from its December 20 low to a high of $0.34 by December 24. At the time of writing, Dogecoin was trading at $0.332, up 3.93% in the last 24 hours but still down 15% on the week.
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What’s Driving the Whale Interest?
The Dogecoin Foundation has been ramping up efforts to bolster the coin’s ecosystem, which could explain the renewed interest from large investors. Recent updates highlight advancements in open-source software designed to make Dogecoin a more viable payment solution.
The Foundation has been working on tools and services to bridge the gap between Dogecoin and real-world payment use cases. These innovations are targeted at grassroots adoption in emerging economies, with the potential for businesses to commercialize the tools and bring Dogecoin payment solutions to a wider audience.
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Dogecoin Price Outlook
The recent whale activity and ecosystem developments could set the stage for a price breakout, but resistance levels loom ahead.
Key Resistance Levels:
Dogecoin faces its first hurdle at $0.349, followed by the 50-day moving average (MA) at $0.373. If it breaks through, the next target is $0.43, which is expected to serve as a strong resistance zone.
Key Support Levels:
On the downside, Dogecoin has support at $0.27 and $0.23, with a critical floor at the 200-day simple moving average (SMA) at $0.182.
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What’s Next for Dogecoin?
The large-scale whale accumulation suggests growing confidence in Dogecoin’s potential, either due to ecosystem advancements or anticipated price growth. With the Dogecoin Foundation’s focus on expanding adoption and utility, the meme coin could see heightened interest from both retail and institutional investors.
For now, all eyes are on whether Dogecoin can break past resistance levels and sustain its upward momentum. If the whales’ moves are any indication, DOGE might be gearing up for an exciting start to 2025.
