Dogecoin has faced extreme volatility amid U.S. trade war fears and macroeconomic uncertainty, causing a sharp decline in price action. The meme coin plunged over 39% in less than 48 hours, wiping out weeks of gains and shaking investor confidence. However, since hitting its local low, DOGE has managed to recover and tag key resistance levels, hinting at a possible reversal.
Despite the chaos, top analyst Ali Martinez shared on-chain insights revealing that whales took advantage of the recent dip, accumulating a staggering 750 million Dogecoin. This signals strong confidence among major players, suggesting that institutional and large-scale investors see the current price levels as a buying opportunity rather than a sign of prolonged weakness.
Now, the market is watching closely to see if Dogecoin can build momentum and reclaim higher levels. If the price stabilizes and reclaims key resistance zones, it could pave the way for a new rally. However, another wave of selling pressure could emerge if uncertainty continues to dominate. With whales stepping in, DOGE’s next move will be crucial in determining its short-term direction and potential for a breakout.
Dogecoin Struggles Below Key Levels As Whales Accumulate
Dogecoin has been under aggressive selling pressure as the entire meme coin market faces significant drawdowns. The price has struggled to maintain key support levels, leading to uncertainty about the short-term trend. However, analysts remain optimistic about DOGE’s long-term outlook, predicting a strong rally that could send the price past its 2021 all-time high of $0.73.
Despite the recent volatility, on-chain data suggests that large investors are taking advantage of the dip. Top analyst Ali Martinez shared on-chain data and an analysis on X revealing that whales seized the opportunity during the sell-off, accumulating 750 million Dogecoin. Martinez sees this as a strong sign of confidence in the market, indicating that big players are positioning themselves for a potential breakout in the coming months.
While DOGE remains below key liquidity levels, the structure still looks bullish from a long-term perspective. If the price can reclaim crucial resistance zones, a reversal toward higher levels could be imminent. However, the coming weeks will be critical in determining whether Dogecoin can recover quickly or if further consolidation is needed before a push toward new highs. With whales actively accumulating, the market will be watching closely for signs of a renewed uptrend.
Price Analysis: Key Levels To Hold
Dogecoin is currently trading at $0.26 after days of selling pressure and a wave of negative sentiment that has impacted the entire crypto market. The price is hovering just above the 200-day exponential moving average (EMA), a crucial indicator for maintaining bullish momentum. Bulls need to defend this level to confirm short-term strength and avoid a deeper correction.
If DOGE fails to hold above the 200-day EMA, a drop toward the $0.22 demand zone is likely, which could lead to further consolidation before any potential recovery. However, if bulls manage to sustain strong support around the $0.26 level, a move toward $0.29 could be imminent. A breakout above this resistance would likely trigger renewed buying pressure, setting the stage for further gains in the coming weeks.
For now, Dogecoin remains in a fragile position, with market uncertainty dictating price action. Holding above the 200-day EMA would keep bullish hopes alive, but a failure to do so could send DOGE into deeper correction territory. Traders will be closely watching the next few sessions to determine whether the meme coin can regain momentum and push toward higher price levels.
Featured image from Dall-E, chart from TradingView
