Dogecoin (DOGE) has been on a tear since May 2024, with its price surging over 32% to hit a 24-hour high of $0.16. This bullish momentum coincides with a significant influx of investment from cryptocurrency whales, who have reportedly accumulated $130 million worth of DOGE. But can these whales propel the meme coin past the crucial $0.20 resistance level?
Whales Accumulate, Bulls Eye $0.20
The recent surge in DOGE’s price can be attributed, in part, to the buying activity of large investors, often referred to as whales. On-chain data suggests that whales accumulated DOGE in May, injecting significant capital into the market. This positive outlook is supported by technical indicators like the Moving Average Convergence Divergence (MACD), now above zero.
However, there is a task to accomplish. The upper Bollinger Band states that DOGE’s core resistance cluster is near the $0.17 mark. If bulls can drive the price over this barrier, a breakout towards the targeted $0.20 level may be possible.
In May 2024, whale investors purchased 820 million DOGE
As of this writing, DOGE has erased the losses from the previous week by rising beyond 0.15%. On-chain data reveals that whale investors have been profiting from the Dogecoin rise behind the scenes despite the retail push, including Gamestop, dominating headlines in the cryptocurrency media.
This increase in nostalgia may also affect Dogecoin, which gained notoriety in 2021 amid the meme stock craze.
From May 2024, these whales in the cryptocurrency space have bought 822 million DOGE. The whales have made further investments totaling $130 million at current prices, riding the positive momentum of Dogecoin’s recent connections to Tesla and Gamestop. Whales making large purchases during a rally typically intensify the upward price momentum for two reasons. First, the upbeat atmosphere around the whales may encourage potential buyers to join the fray as they see their bullish actions.
Furthermore, these whales’ substantial volume purchases significantly increase market liquidity, enabling early profit-takers to withdraw without causing Dogecoin prices to drop.
Technical Evaluation: Dogecoin at a Turning Point
According to technical indications, Dogecoin’s price dynamics appear to be at a turning point. The 50-day Exponential Moving Average (EMA) is an essential resistance level, now at about $0.1652. A break over this barrier would indicate a bullish market and push the price of DOGE closer to the upcoming resistance levels, which are $0.18 and $0.20.
On the other hand, the 200-day EMA at $0.1237 and the 100-day EMA at $0.1434 act as solid support levels against significant falls. Dogecoin may test these levels of support if whale activity increases and there is considerable selling pressure. Should the declining trendline be broken, DOGE may lose crucial support at $0.13. In the worst-case scenario, the optimistic prediction would be refuted if Dogecoin’s price falls below $0.12, perhaps continuing the downturn to $0.11.
Whale activity, the Gamestop rise, and favorable technical indications have all come together to provide Dogecoin a window of opportunity. However, overcoming technological obstacles and developing long-term use cases for the meme coin is necessary to break over the $0.20 resistance and attain steady growth.
Disclaimer: We are obsessed with cryptocurrency and love to write articles to express our thoughts. This article is for informational purposes and contains the writer’s personal opinion. Don’t consider it financial advice from the author or the CoinzBTC team. Do your research and think twice before making any investment decisions. CoinzBTC does not take responsibility for any financial losses.
Also read: Dogecoin is Poised for Epic Growth: Analysts Predict
