530M DOGE Accumulated During Dip – Dogecoin’s Next Move

Dogecoin (DOGE) has recently seen a surge in whale activity, with over 530 million DOGE accumulated during the recent price dip. As DOGE hovers near key support levels, investors are questioning whether the cryptocurrency is poised for a potential rebound.

Whale Activity and Accumulation

Whales, or large holders of DOGE, have been taking advantage of lower prices to accumulate more coins. In the last month alone, the total DOGE held by whales has increased from 23.55 billion to around 24.46 billion. This recent uptick includes a significant accumulation of 530 million DOGE in just three days, as the price fell after mid-February. The most notable dip occurred in late February when the price hit around $0.208, coinciding with the highest level of whale accumulation.

This accumulation pattern suggests that whales are capitalizing on the price dip, potentially setting a stronger support level for DOGE. However, if these large holders decide to sell off their positions, it could lead to a further price decline. This ongoing pattern of accumulation and price adjustment could indicate that DOGE’s price is being influenced by large-scale investors’ strategies.

Order Block Zone and Buying Pressure

DOGE recently dipped into a critical order block zone between $0.20 and $0.23, a historically significant range where a large number of buy orders are placed. This zone has previously been associated with price rebounds, and as DOGE hovers around $0.21, these orders are beginning to get filled. If buying pressure continues, it could push the price upward, potentially driving DOGE back towards previous resistance levels.

Should DOGE successfully consolidate above this critical range and absorb selling pressure, it could mark the beginning of a bullish trend reversal. Analysts suggest that if the cryptocurrency maintains its support in this zone, the next possible price targets could range from $0.30 to $0.50, levels last seen during previous rallies.

However, if DOGE fails to hold support within this zone, it could face further declines. A breakdown below this range could see DOGE testing lower support levels near $0.11 to $0.09, where another significant order block exists.

RSI Bullish Divergence Signals Potential Upward Momentum

In addition to whale accumulation and key support levels, DOGE’s technical indicators are also showing signs of a potential bounce. The Relative Strength Index (RSI) has exhibited a bullish divergence, which is often seen when an asset begins to form lower lows while the RSI shows higher lows. This suggests that selling pressure is starting to wane, potentially signaling a reversal in price direction.

When the RSI falls below 30, it indicates that the asset is oversold. In DOGE’s case, the RSI fell into the oversold territory, but with the recent divergence, there are indications that the market might be ready for a rebound. If this bullish momentum materializes, DOGE could experience an upward push in the near future.

Conclusion: A Bullish Reversal or Further Decline?

Dogecoin’s recent price movements have sparked optimism, especially with the large accumulation by whales and bullish signs from technical indicators like the RSI divergence. If DOGE can maintain support above the critical $0.20 to $0.23 range, a bullish trend reversal could be on the horizon. Price targets could reach as high as $0.30 to $0.50 if the buying pressure continues to mount.

However, if the support levels break down and selling pressure increases, DOGE could test lower levels, with potential support zones below $0.11 to $0.09.

As always, market volatility remains a key factor, and investors should closely monitor DOGE’s price action to determine whether the bullish momentum will materialize or if the cryptocurrency will face further declines.