- DOGE faces $0.40 resistance; a breakout could lead to $0.50.
- Whale transactions surged 400%, signaling potential bullish momentum for DOGE.
Dogecoin (DOGE) has seen a rollercoaster of activity over the past week, marked by dramatic price movements and a surge in whale transactions. After reaching a 20-day high of $0.3968, the meme-inspired cryptocurrency retraced by 10% within 24 hours, trading at $0.3496 at press time. DOGE remains 53% below its all-time high, yet recent developments have sparked optimism among market participants.
Meanwhile, Data from Santiment reveals a staggering 400% increase in whale transactions exceeding $100,000 in the past 24 hours. This surge in activity coincides with an 18% price increase over the past week, suggesting intensified interest from institutional and high-net-worth investors. Historically, spikes in whale transactions often signal accumulation phases or strategic positioning for upward momentum, bolstering bullish sentiment.
Bullish Rally Can Be Expected Despite Downturn?
Technical indicators further support the case for a potential rally. The Chaikin Money Flow (CMF) indicator remains positive at 0.06, reflecting strong capital inflows and sustained buying pressure. Meanwhile, the Relative Strength Index (RSI) is below overbought levels, indicating room for further gains without immediate risk of a sharp correction.
However, Dogecoin faces significant psychological resistance at $0.40. A successful breach of this level could pave the way for further gains, potentially reaching $0.50—a critical milestone en route to the coveted $1 mark. Trading volumes and liquidity remain robust, underpinning market confidence in the token’s upward trajectory.
Despite the optimism, caution is warranted. Analysts highlight the possibility of volatility driven by macroeconomic factors or whale profit-taking. Short-term price action will likely depend on sustained volume growth and broader market sentiment. If DOGE fails to close above $0.3693, it could face a pullback to the $0.32-$0.31 range in the coming days.
Dogecoin is trading at $0.348 at the time of writing. While the immediate outlook leans bullish, traders should monitor key resistance levels and broader market dynamics to navigate potential price swings.
Highlighted News Of The Day
Pierre Poilievre Could Be Canada’s Next Pro-Crypto Prime Minister
