In a flurry of activity, the price of Dogecoin (DOGE) has lingered near the $0.095 mark on Monday following a more than 7% drop last week. Notably, the enigmatic meme coin briefly dipped to $0.080, just above the critical support threshold of $0.078, before rallying on Friday.
Emerging blockchain data reveals an intriguing trend: major cryptocurrency whales have been seizing opportunities to acquire DOGE during this recent price slump. This accumulation trend serves as a potential indication that selling pressure could be easing in the market.
According to insights from Santiment’s Supply Distribution, whales holding between 100,000 and 1 million DOGE have resumed buying, while another tier boasting between 10 million to 100 million tokens has also joined the accumulation effort. Collectively, these groups have purchased a staggering 250 million tokens since Thursday. Contrarily, another set of whales, possessing between 1 million to 10 million DOGE tokens, offloaded about 110 million DOGE during the same period, highlighting a strategic pivot by larger holders leveraging lower market prices.
In support of this bullish trend, data from CryptoQuant underscores a prevailing buy dominance in both DOGE’s spot and futures markets, bolstered by significant whale orders.
Holding interest in Dogecoin has also surged, with the number of DOGE holders soaring by approximately 8.2 million amidst market fluctuations. Interestingly, the Mean Dollar Invested Age has stabilized around 53, indicating a relatively stagnant movement of DOGE within the network.
Technical Indicators Suggest Potential Recovery
Examining the technical indicators reveals a potential retraction from the bearish sentiment dominating the market. The current Relative Strength Index (RSI) sits at 32 after a rebound from oversold conditions, hinting at diminishing bearish momentum. For any recovery rally to gain traction, the RSI must breach the neutral level of 50.
Furthermore, the Moving Average Convergence Divergence (MACD) indicators are showcasing signs of convergence, with diminishing bearish histogram bars, suggesting that the strength of downward momentum may be waning.
Currently, DOGE is testing resistance against a trendline that it had previously broken. During the weekend, this trendline resisted upside movement, but should DOGE manage to close above this level on a daily basis, it could signal a rally extending toward the February peak of $0.110.
Liquidation Cluster Points to Potential Price Target
Data concerning liquidation indicates a concentration of $1.63 million around the $0.11 price point. Markets are known to gravitate towards such zones where orders cluster, hinting at potential price alignment there.
DOGE continues to navigate through a flag consolidation pattern on the charts. Notably, the Stochastic RSI appears to rebound from an oversold zone, suggesting that a buying opportunity may be emerging.
Currently, the acquisition cost for DOGE has plummeted to its lowest level in months, a pattern that often attracts sidelined capital. Here, buyers may discern significant value while sellers remain hesitant.
However, should DOGE revert to a downward movement, the price could drop to Friday’s low of $0.080, with potential losses extending toward the next support at $0.078. The prevailing bearish trend in DOGE suggests that while short-term recovery might occur, it exists within a broader downtrend context.
