Dogecoin trades without significant fluctuations as the price surge has been maintained between $0.33 and $0.31 for over a week. This indicates a significant decrease in volatility, leading traders’ attention away from this token. Nonetheless, it has attracted considerable interest from whales rather than market participants, as they have quietly accumulated over 90 million DOGE in the past few days.
This accumulation indicates that the whales are trying to create a big DOGE breakout by increasing their buying. Interestingly, these accumulations by the whales seem to not hold the tokens for long, as they may soon initiate a significant pullback. According to data from Coinglass, a large leveraged liquidation group has accumulated at $0.42 and then at $0.49.
Data shows that over $70 billion has been leveraged between $0.41 and $0.43, becoming a strong resistance level. Therefore, it seems that the whales are seeking high liquidity areas to quickly execute short-selling transactions around these levels. If the price can maintain and secure above these levels, the token may encounter another resistance level between $0.485 and $0.5, where over $50 billion has been accumulated.
The historical price chart of DOGE shows that the token is repeating the previous trend, but the technical indicators indicate a diverse trend, which is concerning. Although the price is currently leaning similarly to before, the MACD shows decreasing buying pressure.
On the other hand, the token accumulation seems to have decreased with a slight increase in distribution. Therefore, this suggests the possibility of a decrease in the coming days, only below $0.3, which may attract a large sell-off pushing the price to higher targets.
Previously, when Dogecoin price broke out in 2021, the market shifted to an uptrend and began a price increase. Therefore, monitoring whether history repeats itself and the potential impact of the breakthrough on the market will be very interesting.
DYOR! #Write2Win #Write&Earn $DOGE
(DOGEUSDT)
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