Dogecoin Whales Accumulate Over 90 Million DOGE, Eyeing Breakout
Dogecoin has been trading without major variations in the past week, with the rally remaining between $0.33 and $0.31. This drop in volatility has shifted trader’s attention away from the token. However, whales have been quietly accumulating over 90 million DOGE in the past few days, indicating a potential breakout.
The whales’ accumulation suggests they are preparing for a significant DOGE breakout by mounting a buying spree. Despite this, the whales may not hold the token for long, as they could initiate a significant pullback soon. Data from Coinglass shows a large cluster of liquidation leverage has been accumulated at $0.42 and later at $0.49.
The data indicates that more than $70 billion has been leveraged between $0.41 and $0.43, creating a strong resistance level. Whales are targeting high-liquidation areas to execute short trades around these levels. If the price manages to sustain above these levels, it could face resistance between $0.485 and $0.5, where over $50 billion has been accumulated.
Will DOGE Price Reach $0.5?
While the historical DOGE price chart suggests a similar trend to previous patterns, technical indicators show a different trend. The MACD indicates a decrease in buying pressure, while accumulation levels have slightly decreased with a rise in distribution levels. This suggests a potential drop below $0.3 in the coming days, which could trigger a significant liquidation and push the price towards higher targets.
In 2021, a breakout in Dogecoin’s price led to a bullish market and a bull run. It will be interesting to see if history repeats itself and the potential impact of a breakout on the market.