In latest Dogecoin news, the DOGE price daily chart printed a Dragonfly Doji, signaling a potential reversal from the current downtrend.
It was trading at $0.19 at the time of writing, with $0.20 price level forming the potential bottom.
The candle formed at the bottom of a declining market structure, where DOGE price dropped from around $0.235 to a low of $0.199, marking an extended bearish phase.
The long lower wick of the Doji suggested strong buying pressure at lower levels, preventing further downside and hinting at a shift in momentum.
If bullish confirmation follows, DOGE could reclaim $0.210 as immediate resistance.
There is further upside potential towards $0.225 and $0.235 before further advancement.
A close above these levels could establish a trend reversal. However, failure to sustain buying pressure might see DOGE revisiting $0.178 before testing the next key support around $0.165.
If DOGE fails to hold above $0.190, the reversal weakens, increasing the likelihood of another drop.
A bullish reaction to this Dragonfly Doji could drive DOGE into a new uptrend.
However, if buyers fail to sustain momentum, further downside risks remain, retesting lower support zones.
DOGE Price Mean Reversion
The mean reversion theory suggests DOGE price tends to stabilize around this historical average over time despite its short-term peaks and troughs.
Approaches to this line suggest either continuing the ascent or indicating a downturn.
As per ongoing Dogecoin news and development, it is in a downtrend signaling price action is bearish.
Each time Dogecoin has crossed above the line in the past, it has typically led to a significant shift in market behavior, showing increases in buying activity and investor interest.
However, if Dogecoin fails to reach this line or continues to fall away from it, it could confirm the shift towards a bearish market, diverging from its usual pattern of returning to the average.
This would be a crucial signal for investors, indicating a possible need to reevaluate their holdings.
Nearing the mean could present buying opportunities, while falling below it might warn of a longer-term decline.
Dogecoin News: Whale Activity Surge
Additionally, Dogecoin news saw a significant increase in DOGE holdings by whales.
There was a sharp accumulation of 180 million DOGE over the last 24 hours.
This uptick is reflected in the two distinct peaks on the graph, showing the precise moments of heavy buying activity.
The initial peak showed a rapid rise, suggesting the first significant purchase.
This was followed by a series of smaller transactions, contributing to a steady increase in price, indicating ongoing interest and investment.
The most pronounced peak occurred between end of February and start of March, where the largest single-day accumulation happened, aligning with the purchased 180 million DOGE.
Historically, such significant buying activities by whales can lead to a short-term price increase as the market perceives DOGE price as undervalued.
This can attract further buying from smaller investors, driving the price up further.
Conversely, if these whales decide to sell a large portion of their holdings quickly, it could lead to a sharp price drop.
Traders can look for such actions in Dogecoin news, as it could trigger panic selling among smaller investors, exacerbating the price decline.
