Dogecoin (DOGE) Price Remains Under Bearish Pressure But Whales Are Accumulating the Dip

Dogecoin (DOGE) price dropped by 16% in the last seven days, and the recent decline has pushed the token into a high confluence zone.

At the time of writing, Dogecoin is trading at $0.189, with a 4% intraday loss. The world’s tenth-largest cryptocurrency is likely tracking Bitcoin, which fell below $105,000 again.

Dogecoin Price May Bounce From High Confluence Zone

Dogecoin price has entered a high confluence zone between 0.177 and 0.182, where it may find support and bounce if both retail and institutional traders rally for the token.

The zone is characterized by the convergence of multiple technical structures that all contribute to making it a crucial support for this top meme coin.

The first technical structure is the falling wedge pattern that has been in play for nearly three weeks. The confluence zone, as highlighted in the chart below, aligns with the lower trendline of this pattern.

If DOGE price can bounce from here, it will be confirming the bullish reversal that is often portrayed by a falling wedge. Completing this pattern is likely to spark a rally toward the next resistance at $0.20, which aligns with the 50% Fibonacci retracement level.

Secondly, this zone coincides with the 161.8% Fibonacci level, which is another key structure that usually provides strong support to the crypto. If Dogecoin can successfully defend this support, it will aid the next bullish leg to the first resistance at $0.20 from where a run-up to $0.25 could follow.

For Dogecoin price to confirm a strong bounce from this zone, the Relative Strength Index (RSI) needs to cross back above 50. At press time, the metric stands at 39. If it rises and crosses above 50, it will confirm that the momentum has turned bullish, which could validate the bullish outlook further.

However, Dogecoin has several headwinds to overcome before such a rally commences. This includes a bearish flag pattern identified in a recent CoinGape analysis. The pattern suggests Dogecoin may crash to $0.165 before rebounding.

Dogecoin Whales Accumulate 280M DOGE Tokens

According to blockchain analytics firm Santiment, Dogecoin whales have been rapidly accumulating the meme token during the recent price dip.

The chart above shows the changes in the holdings of addresses that hold between 10 million and 100 million DOGE tokens.

As the data shows, the total DOGE holdings for these addresses have increased from 24.19 billion to 24.47 billion in the last 24 hours. This shows that the addresses purchased 280 million tokens, which are worth about $50.4 million at the current DOGE price.

As the chart above shows, these addresses now hold the highest amount of DOGE tokens since mid-March after a month of gradual accumulation.

Such heavy whale accumulation is usually a bullish signal that indicates the price of a token may recover in the near term.

Considering the entry of Dogecoin price into a high confluence zone, it is likely that the price may bounce and possibly reach $0.25 in the near term. Meanwhile, whale holdings have surged to the highest level since mid-March. However, Dogecoin needs to overcome the ongoing bearish sentiment for it to make a strong rebound to the upside.

For more details on Dogecoin price forecast between 2025 and 2030 – Read This.

Frequently Asked Questions (FAQs)

1. Can Dogecoin price bounce from its high confluence zone?

Yes, Dogecoin price may bounce from the confluence zone if it gains strong support from retail and institutional traders. The falling wedge pattern, 161.8% Fibonacci level, and a potential positive divergence in RSI could aid this bounce.

2. Why are whales buying DOGE?

The reason for the recent buying pressure from whales is unclear. However, it could be linked to the bullish signals that are emerging in the technical analysis of Dogecoin price.

3. What is the key resistance level for Dogecoin price?

Dogecoin price faces strong resistance at $0.20, which aligns with the 50% Fibonacci retracement level and the key psychological barrier. A breakout above this level could spark a strong rally toward the next resistance at $0.25.