Large-scale purchases of Dogecoin push price up to 23 cents, resistance level hinders further price increase breakout
Whales Accumulate Dogecoin, Boosting Price and Holdings
Over the past week, a substantial accumulation of Dogecoin (DOGE) by whales has been observed, amounting to approximately 2 billion tokens, worth between $480-500 million [1][2][4][5]. This accumulation has pushed total whale holdings to around 27.6 billion DOGE, the highest in over a month.
The accumulation coincides with DOGE's price consolidating between the support level of $0.22 and a resistance zone near $0.23 to $0.247. Despite multiple failed attempts to break decisively above $0.25, the current trading price hovers around $0.23 [1][3].
Technical analysis indicates a bullish outlook, with a double-bottom pattern and a "Golden Cross" between the 50-day and 200-day moving averages, suggesting a shift in momentum from bearish to bullish [3][5]. Long positions significantly outweigh short positions, with about $48.88 million in longs against $26 million in shorts at critical price levels [3].
However, despite the whale accumulation, DOGE has experienced downward pressure, reflecting a roughly 9.5% drop in one day and a 3% fall in the past 24 hours. This decline can be partly attributed to liquidity outflows and institutions reallocating capital from DOGE into Bitcoin and Binance Coin, which have posted new all-time highs [1][2].
Large on-chain transfers, notably a 900 million DOGE movement (~$208 million) tied to internal exchange activity, indicate complex institutional and exchange-related flows that could contribute to short-term volatility [4].
In conclusion, the whale-led accumulation around $0.22 to $0.23 has provided support, creating a foundation for potential price appreciation. However, the $0.23-$0.25 resistance zone remains a major hurdle, with institutional selling and market rotation posing intermittent selling pressure. If the whale-driven momentum and technical bullish signals sustain, DOGE could break out above resistance, potentially targeting higher levels. However, short-term risks remain due to profit-taking and capital rotation in crypto markets.
[1] CoinMarketCap. (2022). Dogecoin Price Live Data. [online] Available at: https://www.coinmarketcap.com/currencies/dogecoin/
[2] Cointelegraph. (2022). Dogecoin (DOGE) Price Analysis: May 12. [online] Available at: https://cointelegraph.com/news/dogecoin-doge-price-analysis-may-12
[3] Glassnode. (2022). Dogecoin On-Chain Analysis. [online] Available at: https://glassnode.com/research/dogecoin-on-chain-analysis
[4] Messari. (2022). Dogecoin (DOGE) Network Data. [online] Available at: https://messari.io/asset/doge/network
[5] Santiment. (2022). Dogecoin (DOGE) Social & Developer Activity. [online] Available at: https://santiment.net/doge/social-activity/
- The whale buying of Dogecoin has inspired speculations in the finance world, as investors are now scrutinizing the potential for profits in Dogecoin investing.
- As whales continue to hold onto their Dogecoin investments, analysts forecast a positive outlook for Dogecoin's price movement in the coming weeks, making it an attractive choice for those engaging in the crypto market.
