Dogecoin is trading without major variations as the rally remains between $0.33 and $0.31 for over a week. This indicates a large drop in volatility, which has seen a major shift in trader attention away from the token. Despite this, the token has generated more interest in the whales than in the market participants, as they have quietly amassed more than 90 million DOGE in recent days.
This build-up indicates that the whales are trying to trigger a massive DOGE breakout by mounting a buying spree. Interestingly, these accumulations by the whales do not appear to hold the mark for long, as they could soon initiate a significant pullback. According to Coinglass data, a huge cluster of liquidation leverage built up at $0.42 and later at $0.49
The data shows that more than $70 billion has been deployed between $0.41 and $0.43, creating a strong resistance level. Therefore, it appears that the whales are looking for areas of high liquidation to quickly execute short trades around these levels. If the price manages to stay above these levels and secure, the token could once again encounter resistance between $0.485 and $0.5, where more than $50 billion has been accumulated.
What’s next? Will DOGE Price Ever Reach $0.5?
The historical DOGE price chart suggests that the token is repeating its previous trend, but the technical data shows a diverse trend, which is concerning. Although the price is deviating in the same way as before, the MACD suggests a drop in buying pressure. On the other hand, the accumulation of the token seems to have decreased with a slight increase in distribution levels. So this indicates a potential drop in the coming days, just below $0.3, which could cause a massive liquidation, pushing the price towards higher targets.
Previously, when Dogecoin price made a breakout in 2021, the market turned bullish and started a bull run. Therefore, it would be interesting to see if history repeats itself and what the potential impact of the outbreak is on the market.