Whale activity is stirring in the Dogecoin waters, with millions of tokens quietly amassed over the past two days. Paired with potential market recovery, is the stage set for a significant move?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
Over the past 24 hours, Bitcoin BTC $105 292 24h volatility: 3.8% Market cap: $2.09 T Vol. 24h: $95.86 B price has regained the $96,500 mark, reflecting a 1.12% jump over the past 24 hours. Amid the Bitcoin recovery, the meme coin segment has also experienced a boost in bullish momentum.
Over the same time period, the meme coin market cap has increased to $97.14 billion compared to the recent low of $93.25 billion. As the meme coins bounce back, Dogecoin DOGE $0.36 24h volatility: 4.6% Market cap: $53.47 B Vol. 24h: $3.09 B is signaling a potential comeback.
While maintaining a weekly return of 19.05%, the Dogecoin price action is hinting at a refreshed recovery run for New Year’s Eve.
In the 4-hour chart, the Dogecoin price action reveals a sideways trend after a massive pullback. Retracing the Fibonacci levels over the pullback in early December reveals Doge price consolidating under the 38.20% Fibonacci level at $0.3435.
While the 23.60% Fibonacci level fails to uphold the bullish dominance, the $0.30 psychological mark acts as the bottom support of the sideways trend. Currently, the Doge price action reveals hints at a rounding bottom reversal from the 23.60% Fibonacci level.
Photo: TradingView
Over the past 4 hours, Dogecoin price has increased by 2.94%, creating a bullish engulfing candle. The recovery run is challenging the streak of 6 consecutive bearish candles, accounting for the recent bearish reversal.
The recovery run in Dogecoin has surpassed the 20-EMA line and is currently trading at $0.32081. With a fresh bullish engulfing candle, the daily RSI line has peaked near the 50% halfway line. This reveals the boost in buying pressure and hints at a reversal rally fueled by the bullish divergence.
As Dogecoin prepares for a bullish recovery, the interest of whales in this meme coin has significantly increased. In a recent Ali Martinez, an independent crypto analyst, shared the whales purchased over 90 million Doge tokens within two days.
Photo: Santiment
This highlights a recovery in the whale interest with the holdings rising to 22.13 billion Doge tokens.
Amid the increasing interest in whales, the TD Sequential Technical Indicator also presents a buy signal on Dogecoin. This signal was generated at the Dogecoin market price of $0.31556 in the 4-hour price chart.
Further, it increases the possibility of Dogecoin inscribing a rounding bottom reversal.
With the increasing chances of a reversal rally in Dogecoin, the Fibonacci level spanned the immediate price target at $0.3438 at the 38.20% level. In case of an extended rally with whale support, the breakout rally in Dogecoin could challenge the previous significant resistance at the 78.60% Fibonacci level at $0.425.
Conversely, the $0.30 psychological mark remains the crucial support with the $0.26640 horizontal level as the next in line.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
