DOGECOIN (DOGE) has again captured the cryptography market, as important investors have initiated transactions that suggest a potential price increase.
The Doge billionaires have raised around 110 million tokens in the last 48 hours, indicating a significant level of interest in the cryptocurrency inspired by the same.
Although some analysts interpret this as a positive sign, technical indicators show that the path to go may not be as fluid as some might expect.
Whales caused a sensation with 110 million Doges
Rich buyers recently loaded their bags with millions of Dogecoin chips. Although this purchase has led to rumors of a possible escape, it is common that whales bring together assets before price changes.
Doge’s price is about $ 0.24,4862 at the moment. His highest point for the day was $ 0.247588 and his low point was $ 0.243102. It seems that the whales are preparing for a possible recovery during this phase of accumulation, but it is not clear if it will lead to a continuous increase.
Key resistance and support levels in the accent
A technical study shows that Dogecoin is now faced with a strong resistance between $ 0.2,556 and $ 0,2650. If the bulls persist these levels, a greater increase could begin. Despite this, the fact that he failed to break could lead to more retracement or stabilization.
Doge’s weakness is that it needs solid support at $ 0.19 and $ 0.16. According to the Crypto Ali Martinez analyst, it is very important that the meme piece remains above these support areas in order to maintain any positive progress.
If this medium does not cave, the $ 3 target for the memes part remains a strong possibility, said Martinez. But, if Doge falls below these values, a more serious correction can be in progress.
Technical indicators and mixed signals
Despite the accumulation of whales, the technical signs suggest a more cautious position. For the moment, the relative resistance index (RSI) is close to the neutral. Meanwhile, the divergence of the average mobile average convergence (MacD) shows signs of lowering, indicating that there can be downward pressure.
In order to determine if the activity of the whales will be sufficient to reverse the current negative momentum, the traders keep an attentive eye on these indications. Due to contradictory messages, we do not know what Doge will do next.Could Dogecoin ever reach $ 3?
The idea that Dogecoin strikes $ 3 aroused the cryptocurrency community, but it is still only a theoretical objective. Although a considerable accumulation indicates the confidence of large participants, the feasibility of such an increase in prices will ultimately depend on market conditions and technical resistance levels.
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