Sun. January 12, 2025 ▪
5
min read ▪ by
Dogecoin is going through a decisive phase. For several days, its price has been hovering around $0.33, a key level that attracts the attention of analysts and investors. This threshold rests on a major support line, considered a barrier against a potential deeper correction. So far, DOGE is holding, but for how much longer? According to Trader Tardigrade, a closely followed analyst, the crypto may be finalizing a “selling climax,” a technical structure that often precedes a bullish reversal. However, if this scenario were confirmed, it would mark the end of the correction and pave the way for a significant rebound. Meanwhile, whales are massively accumulating tokens, reinforcing the hypothesis of an imminent recovery. For DOGE, the stakes are high: preserve its support and trigger bullish momentum before the market changes direction.
Dogecoin clings to its key support line
THE Dogecoin is currently in a critical phase where buyers and sellers are competing for a key level. After briefly falling below $0.27 in December, its price quickly rebounded. Thus, it formed a structure that Trader Tardigrade described as a “selling climax” in a post on and progressive change. return of buying pressure.
Currently, DOGE is fluctuating around $0.336, a level identified as a strategic pivot point. According to the analyst, the crypto is undergoing a “secondary test”, a crucial step which allows us to evaluate the support located at $0.315. Indeed, if this zone resists breakout attempts, it could serve as a springboard for a bullish recovery. In this case, a boost in investor confidence could strengthen the positive momentum and pave the way for a new rally in the coming sessions. Conversely, crossing this threshold would expose DOGE to a more pronounced decline, which would jeopardize the prospects of a rapid rebound.
Accumulation of whales, a strong signal?
The interest of whales, those investors who hold large amounts of Dogecoin, is a key indicator of market developments. According to on-chain data from Santiment, these wallets, which hold between 10 and 100 million DOGE, have accumulated over 470 million tokens in just 48 hours. This buying spree brought their total holdings to 22.56 billion DOGE, a 30-day high.
Such massive accumulation is not the result of chance. Historically, whale movements often precede significant price movements, as these players influence liquidity and market sentiment. Their current strategy suggests an anticipation of an upward move, which reinforces the likelihood of a reversal. Tardigrade Merchant actions this analysis and believes that a breakout of the current resistance could propel Dogecoin to $0.66 in the coming weeks. If this trend continues, it could mark a major turning point for crypto, attracting more investors and fueling lasting bullish momentum.
The coming days are crucial for Dogecoin. If support around $0.315 manages to resist selling pressures, it could serve as a springboard for a bullish recovery, reinforced by the accumulation of whales. This dynamic could encourage a gradual return of confidence in the market. However, the crypto industry remains unpredictable. A breakout of this key level would expose Dogecoin to greater risk correctionwhich would dash hopes of a rapid reversal. The evolution of technical indicators and the behavior of major investors will therefore be decisive in confirming or refuting the hypothesis of a rebound in the weeks to come.
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A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.