- On-chain data reveals significant accumulation activity, with whales purchasing approximately 280 million Dogecoin, worth over $50 million, in the last 24 hours.
- Analysts suggest a potential rally to $0.20 or even $0.25 if current support levels hold, supported by technical indicators such as a falling wedge pattern.
Dogecoin (DOGE) saw a plunge of more than 16% over the past week. However, the good news is that it has brought renewed interest from investors. Although its popularity has decreased, DOGE currently rests at a key position that may support a new upward trend. On June 5, DOGE was trading at $0.1921, down by a mere 0.08% as it showed signs of recovery.
Dogecoin Price Analysis Shows Bullish Signals
A combination of bullish trends held within the important range from $0.177 to $0.182 is currently what most attracts investor interest, as reported by CNF. This area, which is called a high confluence area, is defined by overlapping technical indicators that typically indicate strong support and potential reversal.
During the past three weeks, the market has started to form a falling wedge pattern on the chart. The fact that Dogecoin price is currently on the lower trendline of the wedge means a bullish trend could occur if it holds at this support.
Further strengthening the bullish view, the range also meets the 161.8% Fibonacci extension point. Experts often regard it as a strategic pivot point in technical analysis; this level has historically acted as a springboard for price rebounds. With current support intact, Dogecoin price can rise further to $0.20, and the chances are high for $0.25 in the short to mid-term.
Still, a closer look at the wider momentum gives more cause for concern. DOGE’s Relative Strength Index (RSI) is currently below 40 at 39, nearing the oversold territory, which in the past has mostly preceded reversals. For a bullish confirmation, traders are watching for a move above 50, which would indicate a shift in momentum favoring the bulls, as highlighted in our previous post.
DOGE Whale Accumulation & Analyst Insights
In addition, on-chain data suggests surging investor interest in Dogecoin. Over the past 24 hours, large investors (whales) have purchased around 280 million DOGE tokens, which have a current worth of more than $50 million, according to Santiment. With this accumulation, addresses containing 10 to 100 million DOGE have accumulated 24.47 billion, which is the largest number since mid-March.
Investors making purchases of this sort are usually bullish about the future direction of prices. In the last month, the trend of purchases has been increasing, and it seems to be increasing even faster now. Previously, huge supply accumulations have typically led to a major rise in Dogecoin price.
Even so, not all chart patterns are bullish. Analysts also observe a bearish flag, leading them to believe that there will be further dips, reaching $0.165 before Dogecoin begins to recover. Right now, the market is caught in a battle between these conflicting indications.
Meanwhile, Trader Tardigrade, a crypto analyst on X, noted that DOGE is enjoying upward weekly movements, while its ratio with Bitcoin is still falling. According to him, such patterns often indicate that a major rally is coming. The experts also notice that a bullish divergence may be forming when Dogecoin hits another low swing and the RSI begins to rise, often signaling that the price could increase soon.
