Whales Bagging DOGE: Dogecoin Price Rising Slowly; What’s Next?

• Dogecoin price has exceeded the 20-day EMA.
• DOGE price has received buying pressure on the support zone of $0.30.

On a wider time frame, the Dogecoin (DOGE) price has been in a strong bullish trend. After the bullish rally, the price has undergone a correction phase.

Dogecoin price has been consolidating on the top for the past two months. The price has been struggling to exceed a resistance zone of $0.400 for a month.

Despite the decline in Dogecoin’s price, the network’s whale transactions increased dramatically. There were 588 transactions each worth over $1 Million in the last 24 hours alone, indicating a rise in the activity of large investors.

The price of Dogecoin has been declining toward the critical $0.30 support level. Additionally, this increase in transactions coincides with a decline in the cryptocurrency market as a whole.

Whale Activity in Dogecoin

Interestingly, on-chain data from the last few hours indicates that 400 million DOGE, or about $137 Million, were transferred into the Binance exchange by a single Dogecoin whale.

Given that significant investments frequently indicate shifts in investors’ perceptions, the sizeable transaction has increased market anxiety. In a market that is already erratic, this could result in additional price declines.

Additionally, such large-size trades may reflect strategic changes among major investors. Because, a large holder can alter the market’s trend, this whale activity is significant.

Technical Analysis of DOGE Price Over Daily Timeframe

Dogecoin crypto was trading at $0.367 at press time, having dipped by 1.23% over the past 24 hours. Market capitalization was $54.24 Billion.

The memecoin has been rising by defending an ascending trendline. The price has formed an ascending triangle on the daily time frame.

Based on the technical chart, the price has just exceeded the 20-day EMA which showcases the bullish signal. If the price holds the price over the 20-day EMA, it may reach the resistance zone of $0.40.

Once the DOGE price breaks out from the triangle, buyers could be attracted. If the price touches the $0.450 zone, strong buying momentum could be seen. Amid this bull run, the price might record a new all-time high.

Alternatively, if the price slips below the ascending trendline, it could be a profit-booking opportunity. Here, buyers might panic and may prefer to square off the long positions. The consequent profit booking might bring bearishness to the market.

DOGE Price Analysis Amid Whale Activity

Dogecoin is currently experiencing significant whale activity as the price approaches the critical support level of $0.30. Despite recent declines, the increased transactions from large investors signal shifts in market dynamics and investor sentiment.

Technical analysis indicates a bullish trend, with the price recently exceeding the 20-day EMA and the formation of an ascending triangle pattern.

If it successfully breaks out of the resistance zone of $0.40, there’s potential for further upward momentum, possibly reaching new all-time highs.

However, traders should remain cautious, as slipping below the ascending trendline could trigger profit-taking and lead to increased bearish pressure in the market.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.