Dogecoin Whales Accumulate 210 Million DOGE Amid Recent Price Correction
Dogecoin has experienced volatile price movements recently, peaking at $0.484 before retracting over 25%. This decline has created uncertainty for retail investors as Dogecoin struggles to regain momentum.
On-chain data from Santiment indicates a potential recovery, with Dogecoin whales accumulating 210 million DOGE during the recent dip. This accumulation reflects confidence in Dogecoin's long-term prospects.
The market is observing whether this whale activity can restore momentum and push Dogecoin toward its previous highs. For a bullish continuation, Dogecoin must reclaim critical resistance levels. Investors are closely watching for signs of either consolidation or a resumption of upward movement.
Finding Fuel To Rally
Since November 5, Dogecoin has surged over 220%, attracting both retail and institutional interest. However, it is currently in a consolidation phase as the market stabilizes before the next significant move.
Analyst Ali Martinez highlighted on-chain data suggesting that large holders are accumulating DOGE during price corrections, indicating optimism for future price increases. This behavior is often seen as a positive long-term signal for Dogecoin.
Despite these bullish indicators, Dogecoin must break out of its current consolidation to maintain an upward trend. A successful breakout could lead to further gains, while failure to do so may result in a deeper correction as market conditions are reassessed.
Dogecoin Testing Crucial Demand
Currently, Dogecoin (DOGE) is trading at $0.41 after testing support at the $0.36 level, which has remained stable despite market fluctuations. The price is confined within a range between resistance at $0.48 and support at $0.36, indicating a consolidation phase where both bulls and bears await direction.
A breakout above $0.48 would signal renewed bullish momentum and potentially attract more buyers, challenging previous highs. Conversely, failing to hold the $0.36 support might lead to a deeper correction, testing lower demand zones as investor confidence wanes.
As Dogecoin remains in this range, traders are closely monitoring price action for indications of a breakout or breakdown. The upcoming sessions are critical for determining whether DOGE will continue its upward trajectory or enter a prolonged corrective period.
Featured image from Dall-E, chart from TradingView