Dogecoin Whales Bought 210 million DOGE During Recent Correction – Bullish Signal?
Dogecoin’s price action has been volatile over the past few weeks, reflecting broader market indecision. After reaching a new yearly high of $0.484, the price retreated sharply, losing over 25% of its value. This pullback has made it difficult for Dogecoin to regain strength and find a clear direction, creating uncertainty for retail investors.
Related reading
Despite the retracement, on-chain data provides a promising sign for Dogecoin’s potential recovery. Indicators from Santiment show that Dogecoin whales have taken advantage of the recent dip, accumulating a staggering 210 million DOGE during the correction. This accumulation suggests that large holders are preparing for higher prices, signaling confidence in Dogecoin’s long-term prospects.
Markets are keeping a close eye on whether whale activity can reignite momentum Pushing Dogecoin back to highs. With whales accumulating during the correction, a recovery may be imminent, but prices will still need to reclaim key resistance levels to confirm a bullish continuation. Investors and analysts are awaiting the next move, which could determine whether Dogecoin remains in a consolidation phase or resumes its uptrend.
Looking for rebound momentum
Dogecoin has been on a roll lately, experiencing a significant rise since November 5. During this period, Dogecoin gained more than 220%, attracting the attention of both retail and institutional investors. However, after this impressive rally, Dogecoin is now in a consolidation phase as the market pauses before the next big move.
top analyst Ali Martinez shares insights on Xhighlighted on-chain data from Santiment that provides a bullish perspective. Martinez said Dogecoin whales took advantage of the recent price correction to accumulate an impressive 210 million DOGE.
The activity highlights growing interest in “smart money,” as large holders often accumulate funds during dips in anticipation of future price increases. This whale activity is a positive long-term sign for Dogecoin and meme coins, indicating confidence in its potential for further growth.
Related reading
Despite the bullish signals, Dogecoin must overcome the current consolidation to maintain its upward trajectory. A breakout of the current formation could trigger another surge that could continue the uptrend. However, a failure to break out could lead to a deeper correction as investors reassess short-term market conditions. The next move could set the tone for Dogecoin’s direction in the coming weeks, making it a pivotal moment for the popular meme coin.
Dogecoin tests key needs
Dogecoin (DOGE) is currently trading at $0.41 after successfully testing support at $0.36, a key area to remain strong during the recent market volatility. DOGE has been trading sideways over the past few days with resistance at $0.48 and support at $0.36. This range-bound action indicates that the market is in a consolidation phase, with both bulls and bears waiting for the next decisive move.
If Dogecoin can break above the key resistance at $0.48, it will signal fresh bullish momentum and could trigger a rise. Such a breakout could attract more buyers and set the stage for Dogecoin to challenge previous highs. On the other hand, failure to hold support at $0.36 could lead to a deeper correction, potentially testing lower demand areas as investors lose confidence in the short-term outlook.
Related reading
As Dogecoin remains within this range, traders and investors are keeping a close eye on price action, looking for signs of a breakout or breakdown. The next few trading days will be key in determining whether DOGE resumes its upward trajectory or faces a longer correction period. Meme coins are at a crossroads, ready for the next big move.
Featured image from Dall-E, chart from TradingView
