Dogecoin Battles for $0.20 Support as Whale Accumulation Sparks Rally Hopes
Dogecoin (DOGE) is under a lot of selling pressure. It is trading just around $0.20 after falling more than 1.7% in the last 24 hours.
Quick overview
- Dogecoin is currently facing selling pressure, trading around $0.20 after a 1.7% decline in the last 24 hours.
- Despite the price drop, significant accumulation by Dogecoin whales suggests growing confidence among large investors.
- Technical indicators show DOGE is struggling below key support levels, with potential for further declines if it falls below $0.198.
- Analysts predict a possible price increase to $0.24 by September, contingent on breaking resistance levels and overall market recovery.
Dogecoin DOGE/USD is under a lot of selling pressure. It is trading just around $0.20 after falling more than 1.7% in the last 24 hours. The memecoin’s recent performance mirrored broader cryptocurrency market weakness, with institutional outflows from crypto-linked ETFs totaling $223 million over the previous week according to CoinShares statistics.
Dogecoin Whale Activity Provides Bullish Counternarrative
Even if prices have been going down lately, a lot of institutional buying is happening behind the scenes. In just 48 hours, big Dogecoin whales have gathered more than 1 billion DOGE coins. This shows that big investors are becoming more confident. This accumulation pattern historically precedes large market changes and presents a bullish counterweight to the current technical weakness.
Accumulation is happening at the same time as DOGE is trading in its historical accumulation zone of $0.15 to $0.22, which has led to huge price increases in the past. KrissPax, a crypto expert, says that Dogecoin’s RSI on the 4-hour chart is getting close to the level that caused a 70% rally in June, when DOGE jumped from $0.14 to more than $0.24 in a month.
DOGE/USD Technical Analysis
The price of the token has been very unstable. For example, it dropped 5% in just 24 hours from August 4 to 5, going from $0.21 to about $0.198. A major liquidation event happened when trade volumes shot up to 877.9 million, which is over four times the daily average of 268.85 million. This caused the price to break below the important $0.205 support level.
Technical indicators don’t give a clear picture of DOGE’s near-term future. The cryptocurrency is now trading below both the $0.20 level and the 100-hourly simple moving average. A declining channel is making it hard to break through at $0.20. The hourly MACD is picking up speed in bearish zone, and the RSI has dipped below the neutral 50 mark, which means that the downward pressure will continue.
Critical Support Levels Determine Next Direction
Traders are keeping a close eye on whether DOGE can stay stable above the $0.198–$0.199 support zone. If this level doesn’t hold, the price could go down significantly more, to $0.185 or possibly $0.175, with the main support at $0.1750. If the price goes below this level, it could drop to $0.1680 or $0.1620 in the near future.
On the other hand, recovery over important resistance levels could mean a change. The first big obstacle is at $0.2050, and the next one is at $0.20. If the price stays above $0.2120 for a long time, it might go up to $0.2250 and maybe even $0.2350. Bullish targets go up to $0.250 and beyond.
Dogecoin Price Prediction and Market Outlook
The technical configuration shows that DOGE is at a key point. If critical resistance levels are broken, the emergence of a possible bullish megaphone pattern, along with whale accumulation and past RSI patterns, could support a big upward rise. CoinCodex thinks the price of DOGE will go up 16% by the beginning of September, reaching $0.24.
Some analysts think that the present pattern could lead to a rise to $0.34 if it follows the same pattern as the June surge. Long-term bulls are even more optimistic, aiming for $0.50 in September and making speculative calls for $1 if bullish momentum continues throughout the cycle.
But the immediate future still depends on how the market as a whole feels and what the Federal Reserve decides to do. With investors staying away from riskier assets and institutional investors pulling money out of crypto ETFs, DOGE’s potential to break above present resistance levels will depend on a general rebound in the economy and a renewed interest in meme coins among regular investors.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save