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Dogecoin has faced a challenging period amid the recent market sell-off, experiencing a sharp 20% drop from its local highs. Despite this setback, the meme coin leader still maintains a bullish structure, staying above a crucial demand zone.
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Renowned crypto analyst Ali Martinez recently shared compelling on-chain data, revealing that whales have been actively accumulating DOGE during this downturn. In the last 48 hours alone, large holders have acquired more than 470 million DOGE tokens, suggesting confidence in the potential recovery and long-term value of the asset. This significant buildup indicates strong institutional and whale interest, even as the broader market remains uncertain.
Dogecoin’s resilience at current levels reflects its ability to capture investors’ attention, especially during volatile periods. As the broader market looks for direction, DOGE’s ability to maintain its bullish structure could pave the way for a substantial rally.
Dogecoin prepares for a big move
Dogecoin is proving resilient as it holds firm above the $0.33 mark, despite a notable drop from its recent local highs. This level has become a key demand zone for the meme coin, and serves as a base for a possible recovery and bullish momentum. Market analysts and investors are closely monitoring DOGE price action, anticipating a continuation of its bullish trend, as expectations grow for a strong rally this year.
Martínez recently highlighted compelling on-chain data aboutrevealing that whales have accumulated over 470 million DOGE in the last 48 hours. This increase in whale activity during a period of price consolidation underscores the growing confidence among large holders in Dogecoin’s long-term prospects.
Historically, such accumulation has often been a precursor to major price moves, as high net worth and institutional investors position themselves for the next big move.
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Bullish whale activity adds a layer of optimism for 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 possible breakout. If this trend continues, Dogecoin could attract renewed retail interest and reclaim higher levels, further solidifying its position as one of the most watched assets in the crypto space.
Price analysis: key supply levels
Dogecoin is trading at $0.33, showing resilience as it remains above the critical demand level of $0.31 despite recent market volatility. This support zone has provided a solid foundation, but the price continues to face significant resistance on its 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 reclaim higher levels to sustain the bullish structure.
For Dogecoin to regain momentum and inspire confidence among investors, the price must surpass the $0.40 mark and hold it as support. This level is a key psychological and technical barrier, and recovering it would indicate strength, encouraging further buying pressure. Beyond $0.40, the $0.43 mark becomes the next critical target. A break above this level would pave the way for Dogecoin to enter price discovery mode, potentially reaching new highs.
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Failure to overcome these resistance levels in the near term could result in prolonged consolidation or a retest of lower support zones. However, with recent whale activity and strong demand at current levels, Dogecoin has the potential to reverse its downtrend and resume its upward trajectory. The next few days will be crucial as the market awaits a decisive move.
Featured image of Dall-E, TradingView chart
