- The massive increase in whale accumulation allowed DOGE to turn bullish again
- If everything falls into place, DOGE could retest its resistance at $0.42
The bullish state of the crypto market has allowed most cryptos to pump their prices into the charts. Dogecoin [DOGE] was no exception. Not only did investors show confidence in the memecoin, but deep-pocketed players also raised a significant amount of DOGE.
Dogecoin whales show confidence
Over the past week, DOGE’s performance has been impeccable, with its value skyrocketing by more than 88%. This allowed the memecoin to rise above $0.42 for a short period. However, it soon recorded a slight pullback after reaching the $0.43 level.
When the price of DOGE started to fall, whales took the opportunity to stockpile the memecoin. Ali, a popular crypto analyst, shared one tweet points to this development.
According to the same information, DOGE whales purchased 140 million DOGE in the last 24 hours – worth approximately $56 million. This massive accumulation highlighted whales’ confidence in the memecoin.
The increase in whale accumulation was also complemented by an increase in the number of large keepers. IntoTheBlock’s data showed that the number of addresses with DOGE worth $10k-$100k and $100k-$1M increased by more than 140% and 199%, respectively. Additionally, DOGE addresses with more than $10 million in the last 30 days are also up 155%.
Source: IntoTheBlock
Are there problems ahead?
The latest phase of whale accumulation has helped DOGE turn its daily chart green again. However, this pressure from major players may not be enough for DOGE to maintain its upward trend.
DOGE trading volume has fallen sharply in recent days. A decline in the benchmark usually means that there is a good chance that the prevailing price trend will change.
Here it is also interesting to note that despite the latest price increase, Dogecoin’s MVRV ratio fell. At the time of writing, the metric had a value of 27.9%. When the MVRV ratio falls, it means that short-term holders can make money, while long-term holders tend to lose money.
Source: Santiment
Apart from this, Coinglass’ facts also revealed a worrying statistic.
Dogecoin’s long/short ratio has fallen in recent hours. This meant that there were more short positions in the market than long positions, indicating a price drop. If a trend reversal occurs, DOGE may first witness a slight pullback to $0.371.
Read Dogecoins [DOGE] Price prediction 2024-2025
However, in the event of a sustained price increase, the memecoin price could reach the resistance at $0.42 again. If reported earlier by AMBCrypto, a breakout above that resistance could trigger a double-digit price rally.
Source: Coinglass