Dogecoin has had a challenging time amid the recent market sell-off, with a sharp decline of 20% from its local highs. Despite this problem, the dog meme leader still maintains a supportive structure, keeping above the critical demand area.
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Famous crypto analyst Ali Martinez recently shared solid data on chain, indicating that whales have been actively collecting DOGE during this downturn. In the last 48 hours alone, more than 470 million DOGE tokens were acquired by large holders, suggesting confidence in the recovery and long-term value of the asset. This massive rally reflects strong institutional and hawkish interest, even as the broader market remains uncertain.
Dogecoin exchange rate is free here showing its ability to capture the attention of investors, especially during volatile times. With the broader market looking for direction, DOGE's ability to maintain its support structure could pave the way for a substantial rebound.
Dogecoin prepares for a big move
Dogecoin is showing resilience as it is holding strong above the $0.33 mark, despite a significant drop from its recent local highs. This level has become the main area of demand for the meme coin, serving as a basis for recovery and moving up. Market analysts and investors are closely monitoring the price action of DOGE, expecting the upward trend to continue, as a strong rally is expected this year.
Martinez recently picked up strong chain data on Xreveals that whales have collected more than 470 million DOGE within the last 48 hours. This increase in whale activity during a period of price consolidation reflects growing confidence among large holders in Dogecoin's long-term prospects.
Historically, such a rally has often been a precursor to significant price moves, as institutional and high net worth investors position themselves for the next big move.
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Bullish whale activity adds a layer of hope to Dogecoin, even as the broader market goes through a period of uncertainty. With smart money actively accumulating, DOGE appears to be in a strategic accumulation phase, setting the stage for a breakout. If this trend continues, Dogecoin could attract new selling interest and regain higher levels, strengthening its position as one of the most watched assets in the crypto space.
Price Analysis: Key Levels of Supply
Dogecoin is trading at $0.33, showing resilience as it holds above the $0.31 critical demand level despite recent market volatility. This support area has provided a solid base, but the price is still facing a lot of resistance on the way to recovery. Every day that DOGE remains below the $0.40 mark increases the risk of a deeper correction, putting pressure on bulls to recover higher levels to maintain the supporting structure.
For Dogecoin to regain momentum and boost confidence among investors, the price must break above the $0.40 mark and hold it as support. This level is a major psychological and technical barrier, and regaining it would signal strength, encouraging further buying pressure. Beyond $0.40, the $0.43 mark will be the next critical target. A break above this level would pave the way for Dogecoin to enter price discovery mode, possibly reaching new highs.
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Failure to overcome these resistance levels in the short term could lead to prolonged consolidation or retesting of lower support zones. However, with recent whale activity and strong demand at current levels, Dogecoin has the potential to bounce back and resume its upward trajectory. The coming days will be crucial as the market looks for a definite move.
Featured image from Dall-E, chart from TradingView
