Dogecoin is testing a key level after a 22% drop, bringing the price down to the $0.10 mark. This key area has become a turning point for the popular meme coin, which may trigger a new rally or lead to further correction.
Analysts and investors remain optimistic despite the recent dip, watching price action closely for any signs of a breakout. Some experts shared metrics that support this bullish view, citing key whale activity as a positive indicator.
Notably, data from Santiment, shared by prominent crypto analyst Ali, highlights significant whale buying during the recent Dogecoin dip. This accumulation of large holders is often seen as a bullish signal, raising confidence in the future price increase.
As Dogecoin moves closer to this key support, the next few days will be critical for DOGE and the broader crypto market.
Major Players Buying Dogecoin
Dogecoin’s sentiment has changed dramatically in just a few days, from extremely bullish to apprehensive and possibly bearish. The price is up a staggering 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 meeting, causing concern among analysts and investors.
Despite the decline, there is still hope for a bullish reversal, especially for those closely following on-chain metrics. Key data from Sentiment shows that large holders, or whales, are showing more activity, a signal that has historically preceded market returns.
Crypto analyst Ali recently shared a chart on X showing that Dogecoin whales bought more than 1 billion DOGE in the last 24 hours, a total of about $108.7 million. This significant accumulation at a time of high volatility suggests that “smart money” is positioning for future price increases.
Typically, whale buying behavior like this happens before big rallies, as these big players tend to pile up when the market is volatile and uncertain. If this trend continues, Dogecoin could see another movement to the top soon. Although the recent correction has raised some doubts, the whale activity provides a better outlook for those who are still betting on Dogecoin’s rally to the upside.
DOGE Price Action
Dogecoin (DOGE) is currently trading at $0.107, experiencing a 22% selloff from last week’s high of around $0.13. This decline has brought the price to a critical area, as it is testing the 4-hour 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 bullish support.
For bullish momentum to regain control, Dogecoin must break above the 4-hour 200 EMA and return to the $0.12 mark, indicating a strong upward trend. Conversely, if the price fails to break through these resistance levels, a deeper correction may occur, with a lower demand target around $0.088 coming into effect.
As the crypto market is always volatile, DOGE’s price action will be closely watched by traders and investors alike. The next few moments will be crucial in determining whether Dogecoin can muster enough strength to break through these key levels or if it will continue to face downward pressure.
Featured image from Dall-E, chart from TradingView