The latest market correction has provided an opportunity for Dogecoin (DOGE) whales to accumulate approximately 750 million DOGE during weak price periods.
This proves the renewed belief in Dogecoin price despite its struggle in the market.
Such large-scale whale acquisitions have historically preceded a major price movement.
Institutional and super-big whales take this time to get in ahead of time before the broader market moves.
Dogecoin Price Struggles as Daily Decline Reaches 2%
This accumulation occurred during the Dogecoin price decline, about 2% of the last 24 hours.
While this drop fits the wider market volatility in the cryptocurrency market, the size of the whale purchases implies that some major players see this as a buying opportunity.
This is rather than signaling more weakness. That is corroborated by on-chain data showing that whale wallets have increased their holdings, signaling even more opportunity for a reversal by larger investors.
Considering history, the current wave of whale buying will, if it has the same result in the past, be the precursor to another leg up in the market valuation of Dogecoin.
At the time of writing, the Dogecoin price is currently up at $0.252, touching lightly over a week ago.
They are still cautious amid global economic conditions and broader market liquidity concerns that are largely the source of the downward pressure.
Even if Dogecoin’s price collapse doesn’t look too severe, it follows a broader backward trend that has been ongoing in recent weeks.
Despite upward momentum, the cryptocurrency tends to suffer resistance at succeeding price levels.
Technical Analysis: Can Dogecoin Break the Downtrend?
The four-hour trading chart on Dogecoin shows a descending channel. This indicates that the cryptocurrency is under bearish pressure, as it is trading regardless of higher highs and higher lows.
The move will likely continue downward until this channel is broken to the upside.
Recent price movements showed that Dogecoin resisted the lower range of its trading channel but still hasn’t established enough momentum to establish a turn.
They continue to control this market, with sellers compressing the price within an ever-narrowing range.
Whale accumulation indicates that bigger wallets contend Dogecoin is getting close to a bottom. However, technical signs do not point to a definite shift in momentum.
The current value of the Money Flow Index (MFI) is 40.1, another important metric. That implies some buying is taking place, but it is not enough to indicate broad accumulation across the market.
The MFI measures the inflow and outflow of capital in an asset, and a higher or greater than 50 reading would indicate rising demand.
Until this metric posts a more obvious uptick in direction, traders are hesitant to indicate a future breakout.
For Dogecoin to turn bullish and push for a reversal, the coin would have to break above the upper trendline of the current descending channel.
This is ideally breaking key resistance levels at $0.28 and $0.30. Shifting above these levels would indicate that a change in market sentiment has taken place and actively draw more buyers in to capitalize on the renewed bullish momentum.
However, persistent failure to hold the $0.24 support level could see an additional fall in the Dogecoin price action. It could extend down to even further price levels.
The post Whales Accumulate Dogecoin As Price Struggles: Bullish Reversal Ahead? appeared first on The Coin Republic.
The Coin Republic – Read More