Are Dogecoin Whales Setting a Trap Above $0.4? Here’s What to Expect from DOGE Price Rally
There were no major changes in Dogecoin trading, with gains holding between $0.33 and $0.31 for more than a week. This indicates a significant drop in volatility and thus traders’ attention has shifted significantly away from the coin. Still, the token has attracted more interest from whales than market participants, as they have quietly amassed over 90 million DOGE over the past few days.
This accumulation suggests that whales are trying to achieve a huge breakout in DOGE through a buying spree. Interestingly, these accumulations by whales do not appear to be holding the coins for the long term, as they may soon trigger a significant correction. According to data from Coinglass, massive liquidation leverage has accumulated to $0.42 and later reached $0.49
Data shows that more than $70 billion in leverage is between $0.41 and $0.43, which has become a strong resistance level. Therefore, it appears that whales are looking for high liquidation areas to quickly execute short trades around these levels. If the price manages to sustain and stabilize above these levels, the coin may encounter another resistance between $0.485 and $0.5, where over $50 billion has already accumulated.
What to do next? Will it dog price Ever hit $0.50?
DOGE’s historical price chart suggests that the coin is repeating its previous trend, but the technicals are showing a different trend, which is concerning. Although the price deviation is similar to before, MACD indicates a decrease in buying pressure. On the other hand, the accumulation of tokens appears to have declined, while distribution levels have increased slightly. Therefore, this suggests a possible decline in the coming days, just below $0.3, which could attract heavy liquidations, pushing the price towards higher targets.
Previously, when Dogecoin price triggered a breakout in 2021, the market turned bullish and initiated a bull run. Therefore, it will be interesting to see if history repeats itself and the potential impact of a breakout on the market.
