Dogecoin has faced a challenging period amid the recent market selloff, experiencing a sharp 20% decline from its local highs. Despite this setback, the meme coin leader still maintains a bullish structure, holding above a crucial demand zone.
Renowned crypto analyst Ali Martinez recently shared compelling on-chain data, revealing that whales have been actively accumulating DOGE during this downturn. In the last 48 hours alone, over 470 million DOGE tokens have been acquired by large holders, suggesting confidence in the asset’s potential recovery and long-term value. This significant accumulation indicates strong institutional and whale interest, even as the broader market remains uncertain.
Dogecoin’s resilience at current levels reflects its ability to capture investor attention, especially during volatile periods. With the broader market searching for direction, DOGE’s ability to maintain its bullish structure could pave the way for a substantial rebound.
Dogecoin Prepares For A Big Move
Dogecoin is demonstrating resilience as it holds firm above the $0.33 mark, despite a notable drop from its recent local highs. This level has become a key demand zone for the meme coin, serving as a foundation for potential recovery and upward momentum. Market analysts and investors are closely monitoring DOGE’s price action, anticipating a continuation of its upward trend, as expectations for a strong rally this year grow.
Martinez recently highlighted compelling on-chain data on X, revealing that whales have accumulated over 470 million DOGE within the last 48 hours. This surge in whale activity during a period of price consolidation underscores a growing confidence among large holders in Dogecoin’s long-term prospects.
Historically, such accumulation has often been a precursor to significant price movements, as institutional and high-net-worth investors position themselves for the next big move.
The bullish whale activity adds a layer of optimism for Dogecoin, even as the broader market navigates through a period of uncertainty. With smart money actively accumulating, DOGE appears to be in a strategic accumulation phase, setting the stage for a potential breakout. If this trend continues, Dogecoin could attract renewed retail interest and reclaim higher levels, further solidifying its position as one of the most-watched assets in the crypto space.
Price Analysis: Key Supply Levels
Dogecoin is trading at $0.33, showing resilience as it holds above the critical $0.31 demand level despite recent market volatility. This support zone has provided a solid foundation, but the price continues to face significant resistance in its path to recovery. Every day that DOGE remains below the $0.40 mark increases the risk of a deeper correction, putting pressure on bulls to reclaim higher levels to sustain the bullish structure.
For Dogecoin to regain momentum and inspire confidence among investors, the price must break above the $0.40 mark and hold it as support. This level is a key psychological and technical barrier, and reclaiming it would signal strength, encouraging further buying pressure. Beyond $0.40, the $0.43 mark becomes the next critical target. A breakout above this level would pave the way for Dogecoin to enter price discovery mode, potentially reaching new highs.
Failure to overcome these resistance levels in the near term could lead to prolonged consolidation or a retest of lower support zones. However, with recent whale activity and strong demand at current levels, Dogecoin has the potential to reverse its downtrend and resume its upward trajectory. The coming days will be crucial as the market watches for a decisive move.
Featured image from Dall-E, chart from TradingView
Source: NewsBTC