In recent days, the price of DOGE has stabilized near the $0.4 level, with neither buyers nor sellers gaining clear control. Buyers are becoming impatient, seeking a quick rise above this steady range. This has triggered significant buying interest from large investors, potentially leading to an increase in long positions for Dogecoin.
Whales Begin Accumulation Process
Dogecoin’s value has surged 500% since its lows in August, with a 220% increase following Donald Trump’s presidential election win in November. Currently, the cryptocurrency is experiencing a phase of consolidation around $0.4. Data from Coinglass reveals that Dogecoin witnessed a total liquidation of nearly $7.5 million in the last 24 hours, out of which buyers liquidated around $6 million worth of long positions.
Messari data reveals that addresses holding at least 1 million DOGE now possess a total of 130 billion DOGE, reaching a record high. This increase in holdings by large investors suggests a robust confidence in Dogecoin’s potential for growth.
Data from IntoTheBlock shows a gradual increase in the DOGE’s large transaction volume. It shows that the metric surged from the low of $6.1 billion to $23.3 billion over the last 72 hours. This shows a rising demand from whales as Dogecoin takes a halt around the $0.4 mark.
Despite the bullish sentiment among large investors, their demand has not succeeded in lifting Dogecoin from its consolidation pattern, as the memecoin continues to struggle. Experts suggest that broader market trends will play a role in whether DOGE can hold a breakout above the $0.5 mark.
Also read: Dogecoin (DOGE) Poised For 20% Price Drop if This Happens
Elon Musk’s significant influence continues to be a crucial factor in Dogecoin’s market trends and appeal to major investors. His frequent endorsements via Twitter during the 2020-2021 rally significantly contributed to its sharp price increases.
Recently, a similar momentum boost has come with the introduction of the Department of Government Efficiency, humorously abbreviated as DOGE. This nod to Dogecoin’s ticker symbol has triggered significant interest in the leading memecoin.
What’s Next for DOGE Price?
Dogecoin price is attempting to surge above the consolidation of $0.4. Bulls are actively working to drive the price back into the resistance zone around $0.5. However, bears are strongly defending a surge above EMA trend lines. As of writing, DOGE price trades at $0.405, surging over 0.2% in the last 24 hours.
A successful break above the EMA50 trend line on the 4-hour chart would indicate that the initial rejection might have been a bear trap, potentially pushing the DOGE/USDT pair to $0.48. At this level, sellers are expected to strongly defend.
Conversely, this bullish scenario will be invalidated if the price falls and breaks below $0.36, increasing the risk of a decline to the 50-day simple moving average at $0.31. This level is crucial for bulls to hold to prevent further losses.
As the RSI level is holding below the buying level, we might see a minor downward pressure before a robust rebound.
