During the recent market selloff, Dogecoin has encountered some challenges, witnessing a sharp 20% decline from its recent highs. Despite this setback, the leading meme coin continues to display a bullish structure, maintaining its position above an important demand area.

Crypto expert Ali Martinez has shared insightful on-chain data indicating that whales are actively accumulating DOGE amidst the current market downturn. In just the last 48 hours, large holders have acquired more than 470 million DOGE tokens, indicating a belief in the asset’s potential for recovery and long-term value. This substantial accumulation showcases strong institutional and whale interest, even in the midst of market uncertainty.

Dogecoin’s resilience at its current levels highlights its ability to attract investor attention, particularly in volatile times. With the broader market lacking direction, DOGE’s maintenance of its bullish structure could set the stage for a significant comeback.

Dogecoin Gears Up For a Major Move

Despitethe notable drop from its recent highs, Dogecoin is showing resilience by holding above the $0.33 threshold. This level has emerged as a crucial demand zone for the meme coin, acting as a base for potential recovery and upward momentum. Analysts and investors are closely monitoring DOGE’s price movements, anticipating a continuation of its upward trajectory as expectations for a strong rally increase.

Martinez recently highlighted compelling on-chain data on X, revealing that whales have amassed over 470 million DOGE in the past 48 hours. This surge in whale activity amid price consolidation signifies growing confidence among large holders in Dogecoin’s long-term prospects.

Accumulation of this magnitude has historically preceded significant price movements, as institutional and high-net-worth investors position themselves for future developments.

The bullish whale activity brings a sense of optimism for Dogecoin, amidst a period of market uncertainty. With smart money actively acquiring DOGE, the coin seems to be in a strategic accumulation phase, laying the groundwork for a potential breakout. Continuation of this trend could spark renewed retail interest in Dogecoin, propelling it to higher levels and cementing its position as a top asset in the crypto sphere.

Price Analysis: Identifying Key Supply Levels

Trading at $0.33, Dogecoin displays resilience by holding above the critical $0.31 support level despite recent market volatilitly. This support zone serves as a strong foundation, yet the coin continues to encounter significant resistance on its path to recovery. Each day below the $0.40 mark raises the risk of a deeper correction, placing pressure on bulls to push for higher levels and sustain the bullish structure.

To regain momentum and instill investor confidence, Dogecoin must break above the $0.40 mark and hold it as a support level. This milestone represents a key psychological and technical barrier, and surpassing it would signal strength, fostering additional buying pressure. Beyond $0.40, the $0.43 level becomes the next important target. Breaking through this threshold would pave the way for Dogecoin to explore new price territory.

If the coin fails to overcome these resistance levels in the near future, it may face prolonged consolidation or a retest of lower support areas. Nevertheless, given recent whale activity and solid demand at current levels, Dogecoin has the potential to reverse its downward trend and resume its upward trajectory. The upcoming days will be crucial as the market looks for a decisive move.

Featured image from Dall-E, chart from TradingView

The post Whales Purchase 470 Million Dogecoin Within 48 Hours While Price Challenges Key Support Level – Learn More appeared first on Crypto Breaking News.

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Filed under: News - @ January 12, 2025 2:06 am