The price of Dogecoin has been very volatile in the past 24 hours, sharply rising and falling following massive whale transactions. According to reports, whales have moved over 1.5 billion DOGE coins in the last 24 hours, sparking reactions among market participants.
Dogecoin Shows Uncertainty as Whales Enter Accumulation Phase
Dogecoin has been caught in an accumulation frenzy following significant rallies in the meme coin market this month. Following its decisive ascent above $0.2 in the past weeks, Dogecoin caught the attention of large investors.
While DOGE has pulled back to $0.16, whales saw it as an opportunity to bag more coins awaiting a possible rally soon. Whale Alert reveals that a whale recently acquired 90 million DOGE worth $14.28 million from the Robinhood trading platform.
Also, Whale Alert tracked another massive movement of 499.42 million DOGE worth $81.10 million between two anonymous wallets. The largest transaction in this series involved the movement of a gigantic 970 million DOGE valued at $156.92 million between anonymous wallets in the past day.
Whale transactions often signal significant market moves by major stakeholders that can influence market dynamics. Hence, traders usually make speculative trades based on such events.
These massive purchases will likely boost investor confidence in Dogecoin’s potential. According to renowned crypto analyst Ali Charts, Dogecoin whales have purchased over 700 million DOGE worth around $112 million in the last 24 hours.
Reacting to this update, one of Ali’s followers noted that DOGE is slowly approaching the bottom of the altcoins markets. He believes that this process might take some months. Therefore, according to the analysis, the whales are preparing for the Dogecoin rally with the ongoing accumulation.
Hopefully, DOGE will rally again soon, moving them into more profitable positions. However, another follower, Ben, was quite pessimistic about Dogecoin’s chances. According to Ben, whales will add 14 million DOGE tokens to the market daily, resulting in inflation.
DOGE Shows Price Volatility; What Next?
Whales have been active in the market following Dogecoin’s rally from May 2 to May 4. Meanwhile, Dogecoin faces resistance at the $0.16 price level today as traders show hesitation and indifference.
The meme coin has been on a downturn since May 26, slipping to the $0.16 support zone following stiff pressure from sellers. However, the $0.16 support zone could prevent further decline.
The upper wick of today’s candle is touching the $0.16 resistance level, and a break above it could send DOGE to $0.18. However, Dogecoin’s RSI is neutral, moving sideways with a value of 51.44.
This confirms traders’ indecision in the market. With the RSI still neutral, DOGE’s possible trading range is in the $0.15-$0.16 zone.
The MACD indicator is below the signal line, confirming that most traders take short positions. Therefore, DOGE will likely decline to the $0.14 price level to enter a consolidation phase in the coming days.
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