Dogecoin is testing a crucial level after dropping 22%, bringing its price to $0.10. This key area has become a turning point for the popular meme coin, potentially sparking another rally or leading to further correction.
Analysts and investors remain bullish despite the recent dip and are closely watching the price action for signs of a breakout. Some experts have shared numbers that support this bullish outlook, citing key whale activity as a positive indicator.
Data from Santiment, shared by prominent crypto analyst Ali, particularly highlights the significant whale buying during the last Dogecoin dip. This accumulation by large holders is often seen as a bullish signal, indicating confidence in a future price rebound.
If Dogecoin is hovering near this crucial support, the coming days will be critical for DOGE and the broader crypto market.
Major players buy Dogecoin
Dogecoin sentiment has changed dramatically in just a few days, from extremely bullish to fearful and possibly even bearish. The price has risen an impressive 33% since mid-September, driven by renewed interest and positive momentum.
However, since last week, Dogecoin has returned to the same levels it was trading at before the rally, raising concerns among analysts and investors.
Despite the recession, there is still hope for a bullish reversal, especially for those closely following the on-chain metrics. Key data from Santiment shows that large holders, or whales, are showing increased activity, a signal that has historically preceded the market recovery.
Crypto analyst Ali recently shared a graph on X showing that Dogecoin whales purchased more than 1 billion DOGE in the last 24 hours, for a total of approximately $108.7 million. This significant accumulation during high volatility suggests that ‘smart money’ is positioning itself for an upcoming price rise.
Normally, this type of buying behavior happens before big rallies because these big players tend to pile on when the market is volatile and uncertain. If this trend continues, Dogecoin could see another upward move soon. While the recent correction has cast some doubt, 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 put the price at 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 above the 200 moving average (MA) at $0.105, providing some support for bulls.
To regain control of the bullish momentum, Dogecoin needs to break above the 4-hour 200 EMA and reclaim the $0.12 mark, signaling a possible continuation of the upward move. Conversely, if price fails to break these resistance levels, a deeper correction could 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 gather enough strength to break through these key levels or whether it will continue to experience downward pressure.
Featured image of Dall-E, chart from TradingView