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Dogecoin Whale Activity Surges as Price Nears $0.30 Support Level, What’s Next?

  • Dogecoin whale transactions surged to 588 in 24 hours, signaling increased network activity despite the ongoing price drop.
  • The rise in Dogecoin whale activity hints at potential market consolidation.
  • Intense selling pressure breaches Dogecoin’s 200 EMA and $0.35321 Fibonacci level.

Although the Dogecoin price has dropped, the transactions made by the whales in the network spiked remarkably. Within the last day alone, 588 transactions are above $1 Million. This suggests increased activity among big investors.

This increase in transactions is occurring while the overall cryptocurrency market has been in decline, with Dogecoin price falling towards the crucial $0.30 support level.

Whale Impact on Dogecoin

Notably, on-chain data from the past few hours shows that a single Dogecoin whale transferred 400 million DOGE, worth around $137 Million, into the Binance exchange.

These large transactions raised market anxiety as big investments often signal changes in investors’ perceptions. This may lead to further price drops in an already unstable market.

Additionally, such large-size trades may reflect strategic changes among major investors. This whale activity is important as a large holder can have the power to change the prevailing market trend.

Source: X
Source: X

Technical Indicators Point to Potential Reversal

On the technical outlook, Dogecoin broke below the 200-day Exponential Moving Average (EMA) and the 50% Fibonacci retracement level at $0.35321. This confirms that the market is under severe selling pressure.

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Source: TradingView
Source: TradingView

However, the analysis of the Relative Strength Index (RSI) shows a minor bullish divergence. This suggests that the price may be poised for a reversal, even though it is approaching the oversold region.

More so, this divergence is also associated with a reduction in price rejections in the recent trading session indicating a struggle between buyers to absorb the selling pressure.

The lower rejections may be an indication of a hidden bullish pressure that may help in stabilizing the price if it remains above the next support area at the 38.20% Fibonacci level of $0.3303.

Looking Ahead: Dogecoin Price Key Levels to Watch

Therefore, the market’s reaction to the $0.30 support level will be of utmost importance in the short-term Dogecoin price prediction as the meme coin approaches this level.

If the price holds at this level or bounces back, then it may give a buy signal to a higher resistance zone targeting the 61.80% Fibonacci level at $0.37772.

Conversely, if the price fails to stay above the $0.30 level, the decline may continue toward the lower levels near the 23.60% retracement.

Traders and investors are following these events closely because the activities of whale accounts and the overall market sentiment will be critical in determining the future of Dogecoin price.

At press time, Dogecoin price is trading at $0.3684, down 0.87%. After peaking at $0.3717, it saw a sharp decline to $0.37 before recovering slightly.

The market cap stands at $54.42 Billion. The 24-hour trading volume is up by 8.3% indicating increased trading activity.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Kelvin Munene
Kelvin Munene
Kelvin is an experienced crypto journalist with over 6 years of experience backed by an Actuarial Science and English Degree. He has over 10,000 works published under his profile in several major media sites in the crypto, Web 3, and Finance sectors.