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- Dogecoin Whales Changed Sentiment, Fueling Buying Pressure and Potential Price Rise
- Monitoring Whale Activity Crucial as Dogecoin Targets Key Price Levels and Resistance
Dogecoin (DOGE) has seen significant price fluctuations in recent days, with its value falling to $0.36 on November 23 as major whales reduced their holdings.
However, at press time, Dogecoin was trading at $0.40, reflecting a change in sentiment as these major stakeholders resumed purchases. This new accumulation, coupled with other technical indicators pointing towards bullish momentum, could suggest that DOGE price is preparing for another upward move.
Whale activity and its impact
Source: Santiment
When the price of Dogecoin fell to $0.36, the whales’ holdings increased from 10.59 billion to 10.39 billion DOGE, according to Santiment data. This liquidation increased pressure on the market, triggering a drop in prices.
However, whales have since resumed their accumulation, adding around 200 million DOGE, valued at $84 million at the current price of $0.42.
This new buying pressure eases the selling pressure and fuels the bullish sentiment. The change in whale activity highlighted growing confidence in DOGE’s potential for another rally, with their actions serving as a key driver of the token’s price recovery.
Dogecoin Bullish Momentum Gains Ground: Key Levels to Watch
The ADX, a vital indicator of trend strength, jumped to 68.00, confirming Dogecoin robust bullish momentum. This reading signifies a well-established uptrend, suggesting that DOGE could surpass the $0.40 mark with continued market support.
Source: TradingView
However, the $0.43 resistance level proved challenging as the cryptocurrency failed to maintain momentum above this level. Declining trading volume also signals caution, as sustained buying interest is key to propelling DOGE higher.
In contrast, the $0.36 support level remains a crucial safety net for the bulls, providing room to rebound if selling pressure intensifies. Market participants should closely monitor volume trends to assess the likelihood of a breakout or retest of support.
Dogecoin Price Outlook: Key Scenarios and Market Drivers
Future price movements of Dogecoin largely depend on whale activity and broader market conditions. In a bullish scenario, if whales continue to accumulate and DOGE manages to break through the $0.43 resistance, it could push towards $0.48 in the near term.
Prolonged buying interest and positive sentiment could even fuel a rally, reviving hopes of hitting the psychological $1 mark.
Read Dogecoin (DOGE) Price Prediction 2024-2025
On the other hand, a bearish scenario could emerge if whales resume selling or market support weakens, potentially bringing DOGE back to $0.32. A fall below this level would signal significant downside risk, undermining recent bullish momentum.
Traders should closely monitor whale movements and key price levels to navigate this uncertain market dynamic.