Dogecoin Poised for Potential Breakout Amid Whales’ Accumulation
The price of Dogecoin appears to be setting up for a bullish shift that could alter its trajectory. The excitement surrounding the meme coin has surged following the recent interview between Elon Musk and Donald Trump. Many Dogecoin enthusiasts speculated that Musk might mention DOGE during the conversation, although this did not materialize. However, market analysis suggests that whales are actively accumulating Dogecoin, signaling a potential price surge in the near future.
Whale Activity Hints at an Upcoming Rally
Whales, often considered insiders and key market influencers, can indicate market direction through their actions. Data from IntoTheBlock reveals that Dogecoin whales, or large holders, added $1.1 million worth of DOGE to their portfolios between August 12 and 13. This accumulation suggests that these influential players might be anticipating an imminent price increase.
Further supporting this speculation is the noticeable withdrawal of Dogecoin from exchanges by investors. On August 13, IntoTheBlock reported a net negative exchange flow of DOGE totaling $1.02 million, which indicates that investors are planning to hold onto their coins, likely in expectation of a price rise.
Currently, over $1.5 billion worth of DOGE is “at the money,” with more than 103,000 addresses having purchased DOGE at prices between $0.101 and $0.11. A price drop below this range could result in 14.63 billion DOGE being held at a loss.
Nevertheless, Dogecoin price analysis points to a potential 7% gain in the coming days, which could push these holdings into profitability.
Key Resistance Levels Dogecoin Must Overcome for a 7% Gain
Dogecoin is currently trading in a downtrend, below both the 50-day exponential moving average (EMA) at $0.10531 and the 200-day EMA at $0.11421. Despite this, the price is moving within a rising channel, suggesting a possible short-term bullish correction within the broader bearish trend.
The key resistance levels for DOGE price include $0.1053 as the first significant barrier, followed by $0.1100, which aligns with the upper mid-range of the channel, and $0.11421, a critical level that could signal a trend reversal if surpassed.
Support for Dogecoin lies at the lower boundary of the ascending channel around $0.1000. If the price breaks below this channel, further support could be found at $0.0950 and $0.0900.
The Relative Strength Index (RSI) is currently at 53.18, indicating mild upward momentum. This suggests that the price may test higher resistance levels within the channel. Additionally, the Chaikin Money Flow (CMF) is positive at 0.03, reflecting slight capital inflows that support the potential for continued short-term bullish action.
A significant break below the channel’s lower boundary would signal market weakness, potentially invalidating the current short-term bullish outlook. In such a case, the $0.1000 support level would become the next target for DOGE.
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