Dogecoin Whales Quietly Accumulate Over 90 Million DOGE, Setting the Stage for a Potential Breakout
Despite trading within a narrow range of $0.33 to $0.31 for over a week, Dogecoin has caught the attention of whales who have been quietly accumulating over 90 million DOGE in recent days. This accumulation by whales suggests a possible breakout in the near future, as they mount a buying spree in anticipation of a significant price increase.
However, it is worth noting that these whales may not hold onto the token for long, as they could initiate a substantial pullback soon. Data from Coinglass reveals that a significant amount of leverage has been accumulated at key resistance levels, with more than $70 billion leveraged between $0.41 and $0.43.
If Dogecoin is able to break through these resistance levels and sustain a price above $0.43, it may face further resistance between $0.485 and $0.5, where over $50 billion has been accumulated. This suggests that whales are strategically targeting high-liquidation areas to execute short trades.
What Does the Future Hold for Dogecoin?
While historical price charts indicate that Dogecoin may be following a similar trend to previous patterns, technical indicators suggest a divergence in trends. The MACD shows a decrease in buying pressure, while accumulation levels have slightly decreased and distribution levels have increased.
This could potentially lead to a drop in price in the coming days, with a support level just below $0.3. However, this drop may trigger a significant liquidation event, pushing the price towards higher targets.
Looking back at Dogecoin’s breakout in 2021, which led to a bullish market and a bull run, it will be interesting to see if history repeats itself and the impact of a potential breakout on the overall market.