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Dogecoin has faced a challenging period amid the recent market selloff, experiencing a sharp 20% decline from its all-time high. Despite this disruption, the leader of the meme coin still maintains a bullish structure, holding above the necessary critical area.
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Popular crypto analyst Ali Martinez recently shared some compelling data, revealing that whales have been piling up DOGE during this downturn. In the past 48 hours alone, more than 470 million DOGE tokens have been acquired by major holders, raising confidence in the asset’s potential recovery and long-term value. This significant accumulation reflects strong institutional and whale interest, as the broader market remains uncertain.
Dogecoin’s strength at current levels shows its ability to hold the attention of investors, especially in volatile times. As the broader market looks for direction, DOGE’s ability to maintain its structure could pave the way for a major pullback.
Dogecoin Prepares for a Big Move
Dogecoin is showing resilience as it is holding above the $0.33 mark, despite a significant decline from its recent highs in the area. This level has become an important demand zone for meme currency, which serves as a basis for a possible recovery and higher momentum. Market analysts and investors are closely monitoring the price action of DOGE, expecting a continuation of its growth, as it is expected to have a strong rally this year.
Martinez recently highlighted compelling on-chain data on X, revealing that whales have accumulated more than 470 million DOGE within the last 48 hours. This increase in whale activity during a period of price consolidation underscores the growing confidence among major holders of Dogecoin’s long-term prospects.
Historically, such accumulations have often been the precursor to significant price movements, as institutional and high-income investors position themselves for the next big move.
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Bullish whale activity adds a layer of optimism for Dogecoin, just as the broader market navigates a period of uncertainty. As smart money actively accumulates, DOGE appears to be in a strategic accumulation phase, setting the stage for a potential breakout. If this trend continues, Dogecoin could attract renewed selling interest and return to higher levels, further cementing its position as one of the most watched assets in the crypto space.
Price Analysis: Key Levels of Supply
Dogecoin is trading at $0.33, showing resilience as it holds above the key demand level of $0.31 despite recent market volatility. This support area has provided a solid base, but the price continues to face significant resistance on its recovery path. Every day that DOGE stays below the $0.40 mark increases the risk of a deep correction, putting pressure on the bulls to return to higher levels to maintain the bullish structure.
For Dogecoin to regain momentum and inspire confidence among investors, the price must break above the $0.40 mark and hold as support. This level is an important psychological and technical barrier, and restoring it will signal strength, encouraging more buying pressure. Beyond $0.40, the $0.43 mark becomes the next important target. A break above this level will pave the way for Dogecoin to enter price recovery mode, potentially reaching new highs.
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Failure to overcome these resistance levels in the near term can lead to a long-term consolidation or retesting of lower support areas. 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 looks to make a decisive move.
Featured image from Dall-E, chart from TradingView