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Dogecoin has gone through a challenging period during the recent market sell-off, experiencing a sharp 20% decline from its local highs. Despite this setback, the meme coin leader still maintains a bullish structure, remaining above a crucial demand zone.
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Renowned crypto analyst Ali Martinez recently shared compelling on-chain data showing that whales have been actively accumulating DOGE during this recession. In the last 48 hours alone, more than 470 million DOGE tokens have been acquired by major holders, indicating confidence in the asset’s potential recovery and long-term value. This significant accumulation indicates strong institutional and interest in whales, even as the broader market remains uncertain.
Dogecoin’s resilience at current levels reflects its ability to capture investor attention, especially during volatile periods. With the broader market looking for direction, DOGE’s ability to maintain its bullish structure could pave the way for a substantial recovery.
Dogecoin is preparing for a big step
Dogecoin shows resilience as it remains firmly above $0.33 despite a notable decline from recent local highs. This level has become a key demand zone for the meme coin and serves as a foundation for potential recovery and upside momentum. Market analysts and investors are closely watching DOGE’s price action and anticipating a continuation of the uptrend as expectations for a strong rally increase this year.
Martinez recently emphasized compelling on-chain data about Xshowing that whales have collected more than 470 million DOGE in the last 48 hours. This rise in whale activity during a period of price consolidation underlines growing confidence among major holders in Dogecoin’s long-term prospects.
Historically, such accumulation has often foreshadowed significant price movements as institutional and wealthy investors positioned themselves for the next big move.
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The bullish whale activity adds a layer of optimism for Dogecoin even as the broader market navigates a period of uncertainty. With smart money actively accumulating, DOGE appears to be in a strategic accumulation phase, paving the way for a potential breakout. If this trend continues, Dogecoin could attract renewed retail interest and regain higher levels, further cementing its position as one of the most watched assets in the crypto space.
Price analysis: main supply levels
Dogecoin is trading at $0.33, showing resilience as it remains above the critical demand level of $0.31 despite recent market volatility. This support zone has provided a solid foundation, but the price continues to face significant resistance on its path to recovery. Every day that DOGE stays below the $0.40 mark increases the risk of a deeper correction, putting pressure on bulls to reclaim higher levels to maintain the bullish structure.
For Dogecoin to regain momentum and inspire confidence among investors, the price needs to break above $0.40 and hold it as support. This level represents a significant psychological and technical barrier, and regaining it would be a sign of strength and encourage further buying pressure. Above $0.40, the $0.43 mark becomes the next critical target. A breakout above this level would pave the way for Dogecoin to enter price discovery mode and potentially reach new highs.
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Failure to overcome these resistance levels in the short term could lead to prolonged consolidation or a retest of lower support zones. However, with the recent whale activity and strong demand at current levels, Dogecoin has the potential to reverse the downtrend and resume its upward trajectory. The coming days will be crucial as the market looks for a decisive move.
Featured image of Dall-E, chart from TradingView
Credit : www.newsbtc.com
