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Whales Buy 460M DOGE During the Dip as MACD Bullish Crossover Approaches

  • Whales bought 460 million DOGE in the recent price dip.
  • Dogecoin’s MACD Bullish Crossover approaching on the 4-hour chart signaling a short-term momentum shift for DOGE from bearish to bullish.
  • Dogecoin daily candle closed with a Hammer indicating a potential reversal to the upside.

Whales bought 460 Million DOGE during a recent price dip, according to the displayed data.

The significant activity from large holders reflected an increase in their holdings as price of Dogecoin hovered around $0.321.

This acquisition coincided with a dip in the market, suggesting that these major players were capitalizing on lower prices to increase their stakes.

This indicated a sharp decline in DOGE’s price, followed by a substantial rebound.

This pattern often signals that substantial buying pressure from whales can help stabilize the price after a drop, providing a potential floor at around $0.321.

DOGE whale activity | Source: Ali Charts/X

In the short term, if whales continue to accumulate at lower prices, we could see a stabilization and gradual increase in Dogecoin’s price as market confidence is bolstered by their investments.

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However, the long-term impact will depend on broader market conditions and investor sentiment. Should the whales decide to sell, it could lead to substantial price volatility.

Dogecoin’s Potential MACD Bullish Crossover

Further analysis showed, Dogecoin’s MACD indicator signaled a bullish crossover on the 4-hour chart, suggesting a shift in momentum from bearish to bullish.

This signal occurred when the MACD line crossed above the signal line, indicating increasing buyer momentum and potential uptrend for Dogecoin.

As the crossover approaches, DOGE traded around $0.32, having recovered from a lower support level.

The positive divergence in the MACD suggested that buyers were gaining control, potentially leading to a continued price increase if the trend persists.

DOGE/USD 4-hour chart | Source: Trader Tardigrade/X

The bullish crossover could lead to increased volume and further appreciation.

If DOGE sustains this momentum and stays above the $0.30 mark, it could challenge the next resistance levels at $0.34 and possibly $0.36 in the short term.

Conversely, failure to maintain above the crossover point might result in a return to lower support levels.

Daily Candle Closed with a Hammer Pattern

Dogecoin’s daily candle also closed with a Hammer pattern at $0.29, suggesting a potential reversal to the upside.

This bullish reversal pattern indicated strong buying pressure despite the day’s sell-off.

The presence of this Hammer at the lower end of a downtrend hinted that the sellers were losing steam and buyers were beginning to take control.

The significance of this pattern is amplified as it appeared after a period of sustained downward movement, indicating a possible shift in momentum from bearish to bullish.

DOGE/USD daily chart | Source: Trader Tardigrade/X

If Dogecoin maintains its position above the Hammer’s close and moves past $0.30, it might confirm the reversal, potentially targeting higher resistance levels at $0.34 and then $0.36.

This pattern suggested watching for confirmation in the form of additional bullish candles or increased volume to validate the reversal.

A failure to rise above the Hammer’s high could delay the recovery, keeping the price in a consolidation phase or leading to further declines.

If the bullish momentum is confirmed, DOGE could witness a recovery while sustaining above key support levels could reignite wider interest.

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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lennox gitonga
lennox gitonga
Lennox is a professional financial market analyst who's enthusiastic about blockchain, cryptos, and web3. He started blogging about cryptos back in 2019 and has since never looked back. His work revolves around looking at crypto-projects analytically on a technical and on-chain level, while also making sure it's palatable to the general audience.