- Dogecoin’s impressive price momentum has been highly driven by renewed whale accumulation.
- Additionally, key technical indicators point to a potential breakout above the $0.43 resistance.
Dogecoin has captured the crypto spotlight again. In addition to last week’s impressive rally, this week, the digital asset has undergone whale activity leading to renewed buying interest and hinting at the potential for a price rally.
Recent market developments show that large holders, or whales, have shifted sentiment, contributing to DOGE’s recovery and sparking optimism among traders.
Dogecoin has experienced significant price volatility over the past week, with its value plunging to $0.36 on November 23 due to a notable sell-off by major whales. Data from Santiment indicates that whale holdings declined from 10.59 billion to 10.39 billion DOGE during this period, amplifying market pressure and triggering the price dip.
However, the tide has turned. Whales have resumed accumulation, adding approximately 200 million DOGE to their portfolios, worth around $84 million at the current price of $0.42. This resurgence in whale activity has buoyed Dogecoin’s market performance, with the cryptocurrency rebounding to trade at $0.40 at press time.
Key Indicators Suggest Bullish Momentum
Technical indicators align with the narrative of bullish momentum for Dogecoin. The Average Directional Index (ADX), which measures the strength of a trend, has surged to 68.00, a level that signals a robust uptrend. This development suggests that DOGE could breach the $0.40 level, provided the broader market maintains support.
Yet, challenges remain. The $0.43 resistance level has historically proven difficult to overcome, and declining trading volumes indicate caution among investors. Sustained buying interest is critical to propelling Dogecoin past this threshold and establishing a new price range.
On the downside, the $0.36 support level remains a vital safety net for bulls. If selling pressure intensifies, this level could serve as a rebound point, giving the market another opportunity to regain momentum.
At the time of writing, DOGE is swapping hands with $0.4034 marking a 5.34% surge in the past 24 hours. Additionally, the digital asset has recorded a 2.82% and 173.19% surge in the past week and month respectively.
Dogecoin’s price trajectory hinges on several key factors, with whale activity at the forefront. In a bullish scenario, continued accumulation by whales and sustained market interest could drive DOGE past the $0.43 resistance level, paving the way for a potential climb toward $0.48.
Conversely, a bearish scenario could unfold if whales shift back to selling or if broader market conditions deteriorate. In this case, DOGE could face a retracement to $0.32, signaling a significant loss of recent gains.
Traders and investors should closely monitor whale activity, trading volumes, and key price levels as Dogecoin navigates these volatile market dynamics. Whether DOGE can maintain its upward momentum or succumbs to resistance, the coming days are poised to be pivotal for this popular meme coin.
The post Whale Activity Sparks Bullish Momentum for Dogecoin: $0.43 in Sight? appeared first on ETHNews.
