Dogecoin (DOGE) has posted a modest 5% gain, yet remains below key resistance levels. Despite steady on-chain metrics hinting at quiet accumulation, the leading memecoin is still 47% below its yearly peak of $0.48.
Memecoin Market Sees Profit-Taking
The broader memecoin sector has experienced a sharp 6% drop in market cap over the past 24 hours as investors lock in billions in profits. Dogecoin has not been immune to this trend, slipping over 2% in price despite an impressive 40% surge in trading volume. This divergence suggests that while activity remains strong, market sentiment is uncertain, keeping DOGE in a tight holding pattern.
Key Levels: $0.23 Support Holds the Line
Technical indicators suggest Dogecoin is hovering at a crucial juncture. The $0.23 level has emerged as a key support, preventing further downside. However, for a breakout to materialize, the market must overcome prevailing fear, uncertainty, and doubt (FUD) while boosting trading activity.
A Silver Lining: Rising Holder Confidence
Despite market shakiness, Dogecoin’s holder count has risen significantly. Since its post-election peak, DOGE wallets have grown from 6.8 million to 7.15 million, reflecting sustained confidence among investors. This increase indicates that long-term believers are holding firm, even amid short-term price fluctuations.
A deeper dive into whale activity reveals an intriguing dynamic. While mid-sized whales (holding 1M-10M DOGE) have offloaded billions, larger whales (10M-100M DOGE) have been actively accumulating, injecting $6 billion into the asset since November. This accumulation suggests strong hands are preparing for a potential price move.
For Dogecoin to break past resistance, two factors must align: renewed bullish sentiment and increased buying pressure. A sustained breakout beyond $0.35 remains elusive but could become a reality if whale accumulation continues and retail participation picks up.
Also Read: Raoul Pal Predicts Dogecoin Will Surpass Bitcoin as the Leading Cryptocurrency
With strong HODLing sentiment and deep-pocketed support, this dip might just be the calm before the next Dogecoin surge.
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.
