As the largest memecoin, Dogecoin (DOGE) is heading towards a crucial resistance level at $0.42, last week whales accumulated $214.5 million worth of memecoins to break a new all-time high last week .
#Dogecoin whales bought more than 550 million $DOGE last week, worth around $214.5 million! pic.twitter.com/0eHqQGL3LO
– Ali (@ali_charts) November 21, 2024
The large-scale accumulation has attracted the attention of market analysts, signaling potential bullish momentum. This massive purchase comes at a crucial time as the cryptocurrency heads towards a key resistance level, currently located at $0.42.
Dogecoin approaches critical resistance level
Resistance at $0.42 has proven to be a crucial psychological barrier for Dogecoin in recent weeks following a Bitcoin rally. Many analysts believe that pressure to push the boundaries increased after the whales entered.
A successful breakout above $0.42 would mark a crucial technical breakthrough for Dogecoin to set the stage for breaching an all-time high at $0.73. Technical indicators suggest that DOGE may have the fuel to support a breakout and challenge its previous ATH with a target of $0.83.
Apart from this, the ecosystem has seen an increase in on-chain activity. Dogecoin has reached another milestone with its active addresses surpassing 1.33 million daily users.
The increase in on-chain activity reflects growing demand on the network, which is a positive sign for the cryptocurrency.
The Daily Active Addresses (DAA) divergence measure signals strong buying. This indicator emphasizes the coordination between price increases and participation.
Memecoin currently maintains a strong position above the $0.36 support level. To continue its upward momentum, DOGE must break through and establish $0.45 as a new support floor.
Read also: DOGE Price Rally: Will Dogecoin Break Its 2021 All-Time High?