The Dogecoin price has shown a strong recovery in the last trading day, preventing the token from breaking down a crucial range and confirming the presence of bullish momentum. However, the current market situation is facing significant bearish pressure, which may push the price lower and create a potential buying opportunity for both bulls and whales.
In recent days, whales have been accumulating Dogecoin tokens aggressively, acquiring over 150 million DOGE. Large transactions ranging from $100K to $1M have also increased significantly, indicating whale activity at the price lows around $0.4. Despite equal pressure from both buyers and sellers, bears are now attempting to push the price lower.
The question now arises: will the DOGE price revisit the $0.4 lows amidst weakening buyer strength?
The current market analysis suggests that the bulls are taking a breather after a period of strong performance. The Bollinger bands have expanded and contracted with decreasing volume, leading to parallel bands and low volatility. The price is currently trading within a symmetrical triangle, hinting at a period of consolidation and limited price movement.
Meanwhile, the RSI indicator is showing a downward trend with lower highs and lows, supporting the idea of descending consolidation. It is expected that Dogecoin price will continue to consolidate within the pennant pattern for the next 10 days until it reaches the apex. Market focus has shifted towards top tokens like Bitcoin and Ethereum, but a potential return of liquidity to traditional altcoins could drive Dogecoin’s price higher.
The price target of $0.55 to $0.6 for Dogecoin remains unchanged, with a potential achievement before the end of 2024. The market outlook indicates a period of consolidation and sideways movement before a potential breakout towards the target levels.