Dogecoin (DOGE) experiences huge price surge due to $200M whale buying spree, with a catch

Dogecoin (DOGE) saw a significant uptick, surging from $0.22 to $0.23 within a day, marking a 4% increase by August 9. What set this growth apart was the involvement of big players, known as whales, who engaged in transactions valuing over $200 million in DOGE tokens.

The support level at $0.22 remained robust despite encountering multiple tests, attracting traders who saw the potential for profit. The trading volume peaked at 262.2 million during the early session when the $0.22 level faced intense pressure, yet it remained unwavering.

However, the situation took a turn when Dogecoin (DOGE) reached $0.23, with a swarm of sellers entering the market. Short-term traders opted to cash in their gains, while the whales who initially bought substantial amounts might have started offloading their positions as well.

Between August 8 at 04:00 and August 9 at 03:00, DOGE experienced a 5% surge in volatility, culminating in a swift ascent towards $0.23 around 14:00. This movement led to a surge in volume to 780.9 million as sellers made their presence felt.

Whales made large acquisitions of over 1 billion DOGE tokens, totaling $200 million, and significantly increasing their ownership share to nearly half of the circulating supply – an impressive feat in terms of accumulation.

However, the abrupt reversal occurred during the final hour, as DOGE plummeted by 1% from $0.23 to $0.227 between 02:39 and 03:38. The breakdown intensified at 03:34, with a staggering volume of 11.4 million, followed by a massive spike to 24.1 million at 03:35. This sudden surge in volume suggested that institutional investors were swiftly exiting their positions.

Looking ahead, DOGE exhibited strong support at $0.22, evidenced by multiple tests with substantial volume backing this level. Meanwhile, $0.23 emerged as a formidable resistance level, stalling the rally.

Traders are closely monitoring the interplay between $0.22 support and the significant whale activity in the market. The real challenge lies in breaching the $0.23 mark, which necessitates substantial buying pressure to overcome the prevailing selling pressure.

Following the market turmoil, DOGE stabilized within a narrow range between $0.227 and $0.229. Given the influence of meme coin sentiment on price movements, the future trajectory hinges on whether bullish momentum will resume or further selling pressure will manifest.