Dogecoin is currently testing a crucial demand level after a 23% decline from local highs of $0.13. The meme coin is now at a turning point, as the broader crypto market anticipates a rally in the coming weeks, driven by the Federal Reserve’s recent interest rate cut.
However, despite this favorable macroeconomic shift, October has kicked off with notable selling pressure, causing uncertainty among investors hoping for an immediate price surge.
Amid this volatility, some signs indicate potential strength ahead for DOGE. Key data from IntoTheBlock reveals that Dogecoin whales—investors holding large amounts of the asset—have accumulated heavily since the start of October.
This whale activity often signals growing confidence among influential market participants and suggests a rally may be on the horizon.
As investors look for signs of recovery, Dogecoin’s price action in the coming days will be crucial in determining whether it can reverse its downward trend and regain bullish momentum.
Large Dogecoin Holders Accumulating
Dogecoin is currently at the center of significant speculation as investors and analysts offer varying perspectives on its future price action.
Following weeks of dramatic ups and downs, the meme coin has faced substantial volatility, reflecting broader trends in the crypto market. Some view this period as an opportunity for a rally, while others are more cautious, citing the uncertain price behavior.
Key data from IntoTheBlock provides insight into Dogecoin’s potential for growth. The market intelligence platform revealed in a report shared on X that large Dogecoin holders, or “whales,” accumulated 2.07 billion DOGE last week.
This marks the highest level of whale accumulation since January, typically a signal that precedes aggressive price rallies. When whales increase their holdings, it often indicates confidence in future gains, suggesting that Dogecoin could be on the verge of a breakout.
However, despite this bullish signal, risks remain. If Dogecoin fails to capitalize on this whale activity and experiences further price declines, it could trigger panic selling among retail investors. Such a scenario would likely lead to intensified downward pressure, dampening hopes for a rally. In the coming days, Dogecoin’s price action will be closely watched as investors gauge whether the meme coin can defy the uncertainty and push to new highs.
DOGE Technical Analysis
Dogecoin (DOGE) is currently trading at $0.107 after a failed attempt to maintain momentum above the 4-hour 200 exponential moving average (EMA) at $0.109. While the price is above the 4-hour 200 moving average (MA) at $0.107, it remains in a small consolidation phase, reflecting indecision among traders.
For bulls to gain traction and push the price higher, DOGE must break past the 4-hour 200 EMA and test new highs above the critical resistance level of $0.13. A successful breach of this level could signal renewed buying interest and potentially trigger a rally.
However, if DOGE fails to reclaim the 4-hour 200 EMA, it risks facing downward pressure. In this scenario, a retracement to lower demand levels around $0.095 is likely, which could further dampen bullish sentiment.
Traders closely monitor these key levels, as the upcoming price action will be crucial in determining DOGE’s next move. The combination of consolidation and the proximity to significant resistance indicates that volatility may increase in the near term, making it essential for investors to stay vigilant.
Featured image from Dall-E, chart from TradingView