The price of Dogecoin (DOGE) remains stable, staying above the important support level of $0.14. However, other popular meme coins like PEPE and Dogewifhat (WIF) have experienced significant drops, exceeding 30% in losses.
A detailed examination of Dogecoin’s on-chain data reveals that sustained purchasing activity from large investors, known as whale investors, has been supporting DOGE prices over the past few weeks. Will Dogecoin bulls take advantage of the opportunity to initiate a quick recovery above $0.20, or will prices decline below $0.14 in the coming days?
Dogecoin’s Resilience Amid Crypto Downturn
During the recent downturn in the crypto market on April 12, mega-cap memecoins faced significant pressure, resulting in a global market capitalization decline of over $170 billion.
Dogecoin (DOGE), PEPE, Dogwifhat (WIF) Price Action | April 2024 | Source: TradingView
Interestingly, Dogecoin has shown a more resilient performance compared to its rival meme tokens. While Ethereum-based PEPE and Solana’s Dogewifhat (WIF) experienced declines of 31% and 39.4% respectively over the last 72 hours, Dogecoin’s price has held up relatively stronger. At the time of writing on April 13, Dogecoin registered losses of slightly less than 22% over the same trading period.
Further analysis of on-chain data trends suggests that behind-the-scenes buying of DOGE by crypto whales may be contributing to propping up prices.
Dogecoin’s Resilience Amid Market Turmoil
Before the frenetic market crash on April 12, Dogecoin’s price had reached a yearly peak of $0.22 at the start of the month.
The rally in late March was largely fueled by intense buying pressure from crypto whales. Despite the market downturn on Friday, recent on-chain trends indicate that bullish whales remain steadfast.
According to Santiment data, wallets holding at least 1 million DOGE (~$160,000) showed a cumulative balance of 126.67 billion DOGE at the end of March. By April 13, this figure had grown to 126.84 billion DOGE.
Dogecoin Whales Wallet Balances | Source: Santiment
This suggests that Dogecoin whales acquired 180 million DOGE, valued at approximately $30 million, between April 1 and April 13, despite a 27% drop in prices during that period.
When whale investors increase their holdings during a market correction, it could be seen as a bullish signal for two reasons:
1. Dogecoin Bulls Maintain Control: With over 126.84 billion DOGE in their possession, Dogecoin whales hold a significant portion of the total supply. Their decision to not only hold but to invest more in DOGE during the market downturn has helped stabilize DOGE prices compared to other meme tokens.
2. Potential for Market Sentiment Reversal: Whale buying activity not only absorbs a considerable amount of selling pressure but can also influence market sentiment. If this trend continues, it could inspire confidence among other investors, potentially leading to an early rebound or, at the very least, a reduction in the current downward trend.
Dogecoin Price Defends $0.15 Support Amid Whale Investment
Dogecoin’s price appears poised to defend the $0.15 support level, largely due to the $30 million investment from crypto whales in April 2024, which has absorbed a significant amount of selling pressure.
Analysis from IntoTheBlock’s global in/out of the money data supports this stance. It indicates that 681,720 addresses have acquired 33.2 billion DOGE at the maximum price of $0.14.
Dogecoin Price Forecast| GIOM data | Source: IntoTheBlock
This $0.14 price range has historically been the largest accumulation zone for Dogecoin. As a result, if the current price remains above this level, DOGE could experience a surge in demand, preventing further price declines.
Moreover, if the increased buying pressure coincides with an improvement in overall crypto market sentiment, there could be a rapid rebound in Dogecoin’s price toward $0.20. However, in this scenario, the bulls may encounter resistance at the $0.17 territory.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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