Dogecoin is trading without major variations as the rally remains between $0.33 and $0.31 for over a week. This indicates a significant drop in volatility, due to which a major shift in the trader’s attention was recorded, away from the token. Despite this, the token has attracted huge interest from whales, more than market participants, as they have quietly accumulated over 90 million DOGE over the past few days.
This accumulation indicates that whales are trying to achieve a huge breakout in DOGE by staging a buying frenzy. Interestingly, these whale accumulations do not appear to hold the token for a long period of time, as they may soon initiate a significant drawdown. According to Coinglass data, huge liquidation leverage was accumulated at $0.42 and later at $0.49.
Data suggests that over $70 billion was mobilized between $0.41 and $0.43, which turned into a strong resistance level. Therefore, it appears that whales are looking for areas of high liquidation to quickly execute short trades around these levels. If the price manages to hold and sustain above these levels, then the token could encounter further resistance between $0.485 and $0.5, where over $50 billion has been accumulated.
What’s next? Does the DOGE Price have you already reached $0.5?
The historical DOGE price chart suggests that the token is repeating its previous trend, but the technical data shows a diversified trend, which is concerning. Although the price is deviating the same as before, the MACD suggests a decline in buying pressure. On the other hand, the accumulation of the token seems to have decreased with a slight increase in distribution levels. Therefore, this suggests a potential decline in the coming days, just below $0.3, which could lead to a huge sell-off pushing the price towards higher targets.
Previously, when Dogecoin price triggered a breakout in 2021, the market would turn bullish and initiate a bull run. Therefore, it would be interesting to observe if history repeats itself and the potential impact of the breakout on the market.