Dogecoin is testing a crucial level after a 22% decline, bringing the price down to the $0.10 mark. This key area has become a turning point for the popular meme coin, potentially sparking a new rally or leading to further correction.
Analysts and investors remain optimistic despite the recent dip, closely watching the price action for any signs of a breakout. Some experts have shared metrics supporting this bullish outlook, citing key whale activity as a positive indicator.
Notably, data from Santiment, shared by prominent crypto analyst Ali, highlights significant whale purchases during the latest Dogecoin dip. This accumulation by large holders is often seen as a bullish signal, suggesting confidence in a future price rebound.
As Dogecoin hovers near this crucial support, the next few days will be pivotal for DOGE and the broader crypto market.
Big Players Buying Dogecoin
Dogecoin’s sentiment has shifted dramatically in just a few days, going from extremely bullish to anxious and possibly even bearish. The price surged an impressive 33% since mid-September, driven by renewed interest and positive momentum.
However, since last week, Dogecoin has retraced to the same levels it was trading at before the rally, creating concern among analysts and investors.
Despite the downturn, there’s still hope for a bullish reversal, especially for those closely following on-chain metrics. Key data from Santiment indicates that large holders, or whales, are showing increased activity, a signal that has historically preceded market rebounds.
Crypto analyst Ali recently shared a chart on X revealing that Dogecoin whales purchased over 1 billion DOGE in the past 24 hours, totaling roughly $108.7 million. This significant accumulation during high volatility suggests that “smart money” is positioning for an upcoming price surge.
Typically, whale buying behavior like this happens before major rallies, as these large players tend to accumulate when the market is volatile and uncertain. If this trend continues, Dogecoin could see another upward movement soon. While the recent correction has raised some doubts, the whale activity offers a bullish outlook for those still betting on a Dogecoin rally to new highs.
DOGE Price Action
Dogecoin (DOGE) is currently trading at $0.107, facing a 22% sell-off from last week’s highs of around $0.13. This decline has brought the price to a crucial point, as it tests the 4-hour 200 exponential moving average (EMA) at $0.108, which serves as a key resistance level. Importantly, DOGE is still holding above the 200 moving average (MA) at $0.105, providing some support for bulls.
For bullish momentum to regain control, Dogecoin must break above the 4-hour 200 EMA and reclaim the $0.12 mark, signaling a potential continuation of upward movement. Conversely, if the price fails to break through these resistance levels, a deeper correction may occur, with lower demand targets around $0.088 coming into play.
As the crypto market remains volatile, DOGE’s price action will be closely watched by traders and investors alike. The next few sessions will be crucial in determining whether Dogecoin can muster enough strength to break past these key levels or if it will continue to experience downward pressure.
Featured image from Dall-E, chart from TradingView