Dogecoin (DOGE) has seen a notable surge in whale accumulation recently, with holdings climbing from 23.55 billion DOGE to approximately 24.46 billion DOGE in under a month. This increase includes a net accumulation of about 530 million DOGE in just the last three days, signaling strong confidence from large investors.
Whales bought the dip, accumulating more than 530 million #Dogecoin $DOGE in the last 72 hours! pic.twitter.com/0cRGqxLoXw
— Ali (@ali_charts) February 27, 2025
Whale Buying Signals Market Confidence
As DOGE’s price dipped after mid-February, whales aggressively bought the dip. The lowest recorded price of around $0.208 in late February coincided with peak accumulation levels, suggesting that whales have been strategically purchasing at lower prices. This accumulation pattern often indicates potential price stability or an upcoming reversal.
If whales continue to buy at these lower levels, it could establish a stronger price floor, preventing further declines. However, a sudden sell-off from these large holders could exert downward pressure on DOGE’s price, leading to further corrections.
Key Support and Resistance Levels
Dogecoin recently dipped into a significant order block zone, historically known for high concentrations of limit buy orders. The critical range of $0.20 to $0.23 has seen substantial accumulation, which could serve as a strong support level.
At the time of writing, DOGE is trading around $0.21, hovering just above this key accumulation zone. If the buying momentum continues, DOGE may see a price rebound toward the $0.30 resistance level, with an extended target of $0.50 if bullish sentiment prevails.
Conversely, failure to maintain support within this zone could trigger a retest of lower levels, potentially revisiting the $0.11 to $0.09 range, where another significant order block exists.
RSI Bullish Divergence Hints at Reversal
Adding to the bullish case, DOGE has shown a bullish divergence on the Relative Strength Index (RSI). The RSI recently dipped below 30, an oversold territory, indicating weakening selling pressure. Despite DOGE forming lower lows, RSI divergence suggests a potential price reversal in the near future.
Also Read: Dogecoin Defies Market Crash: Is a Breakout Above $0.20 Imminent?
While bullish signals are emerging, traders should remain cautious. If DOGE fails to gain momentum, it may continue testing lower support levels. Investors should closely monitor whale activity and RSI trends for confirmation of a sustained recovery.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
