Dogecoin maintains support at $0.20–$0.22 amidst whale accumulation, aims for $0.29 rebound
Dogecoin (DOGE) has once again captured the attention of investors as the meme-inspired cryptocurrency faces a critical test of support levels while whales continue to accumulate, sparking hopes of a potential rebound to $0.29.
After a tumultuous week in the cryptocurrency market, Dogecoin saw its price slip to approximately $0.2238, marking an 18% decline over the week. Despite the drop, trading activity remains strong, indicating sustained interest from investors and mounting expectations for a potential price recovery. Market observers are closely watching the $0.20–$0.22 support range, which could determine whether Dogecoin maintains its upward trajectory or experiences further downward correction.
The recent surge in whale activity has played a significant role in influencing Dogecoin’s future. Over the past 48 hours, large holders reportedly acquired $2 billion worth of DOGE. Wallets holding between 100 million and one billion DOGE have been steadily increasing their holdings, signaling a growing sense of confidence among institutional and high-net-worth investors.
Moreover, the withdrawal of 122 million DOGE from Binance suggests a strategic accumulation by smart money, a move that could potentially pave the way for a more substantial rally in the coming months.
Institutional adoption of Dogecoin received a notable boost with the listing of the 21Shares Dogecoin ETF on the Depository Trust and Clearing Corporation (DTCC) platform. This ETF offers traditional investors exposure to DOGE, further solidifying the token’s support around $0.20–$0.22.
Analysts at Santiment have suggested that the combination of ETF speculation and increased whale accumulation could enhance DOGE’s stability and drive up demand in the near future.
On the technical front, Dogecoin’s outlook remains uncertain as the token hovers near the $0.22 support level, retreating from recent highs of $0.271. The Relative Strength Index (RSI) is around 40, indicating proximity to oversold levels.
While bearish momentum persists, the potential for a reversal grows if buying pressure intensifies. At the same time, the Moving Average Convergence Divergence (MACD) indicates downward pressure, although tightly aligned lines could signal an imminent trend shift as traders re-enter the market.
Trader Tardigrade highlighted a recent symmetrical triangle pattern completion for DOGE, suggesting a period of consolidation before a possible breakout. If buyers enter the market, this pattern could set the stage for the next upward surge, emphasizing the significance of the $0.22 support level in shaping short-term price predictions for Dogecoin.
In the short term, Dogecoin faces a decisive moment. If the $0.22 support holds, a potential reversal could propel DOGE towards $0.29, with further targets at $0.35, $0.55, and even $1 by year-end if momentum persists. Failure to maintain this support level could lead to price declines to $0.18, $0.14, or possibly $0.08.
As Dogecoin stands at a critical juncture, with strong whale activity, ETF backing, and crucial support levels at $0.20–$0.22, the direction of its trajectory remains uncertain. Close monitoring of these levels is advised, considering the potential for both a reversal and further decline in the near future.
At the time of writing, Dogecoin was trading at approximately $0.23, reflecting a 2.15% increase over the past 24 hours. Traders and investors alike are urged to stay vigilant in the days ahead as the fate of Dogecoin hinges on holding crucial support levels, potentially unlocking a path towards $0.29 and beyond or prolonging the current downturn.
