Dogecoin Price Signals Contrarian Move As Whale Activity Spikes

Summary:
• Whales have pumped in over 1$ billion in the last 24 hours and there's a spike in trading volume. What does this mean for Dogecoin price?

Doge-themed meme coin, Dogecoin cracked under pressure near $0.130 over the weekend. However, its key metrics on Wednesday signaled a potential reversal at a time the rest of the crypto market was in the red. DOGE was up by 2 percent on the daily chart to trade at $0.109. However, the decline was not asset-specific but market-wide, with Bitcoin price down to $61k.

Notably, there was a rise in Dogecoin’s whale activity. As per data aggregation site, IntoTheBlock, DOGE had seen a 19.1% spike in transactions exceeding $100,000 in the previous 24-hour period. Total whale transaction stood at $1.11 billion at the time of writing. In addition, its Daily Active Addresses had risen by 40.7% during the same period. Meanwhile, the net volume was at +10 million. These figures signal a potential bullish undercurrent building up.

Dogecoin price is at an inflection point, having previously traded sideways near its current level in mid-late September. Therefore, the token is likely accumulating momentum for a potential upside breakout, based on the current bullish control.

That said, the current price is far from the $0.100 psychological support mark. Therefore, a slip to the downside could also potentially trigger a bearish contagion. However, IntoTheBlock reports that 74% of holders are “in the money” at the current price. That could ease the pressure to sell DOGE.

DOGE price prediction

DOGEUSD has a bullish momentum on the 30-minute chart, as per the Volume Weighted Moving Average (VWMA) and RSI indicators. It will likely pivots at 0.107, with the first resistance likely to be at 0.109. However, a stronger bullish momentum could enable it to turn that barrier into support, with the next target moving further up to 0.111.

On the downside, a move below 0.107 will favour the sellers to take control. In that case, the first support could come at 0.105. However, if it fails to hold on to that control, DOGE price could extend the decline to invalidate the bullish narrative and potentially test 0.102.