Dogecoin is seeking stability around the $0.08 mark following a weak session. According to Brave New Coin, the cryptocurrency declined by 2.45% over 24 hours, settling at $0.07845. The market remains divided between hefty purchases by large investors and persistent selling pressure in spot trading.
Resistance Remains in the Price Structure
Despite overcoming a long-term downward trend line that has capped prices since the peak of 2024, Dogecoin has not yet found the expected upward momentum. It continues to oscillate within a wide accumulation range between $0.07 and $0.10, with upward movements currently limited.
A weekly chart by TehLamboXcharts shows price support near the lower band, but buyers lack the strength to breach the $0.10 upper boundary. Thus, although the trend line has been broken, confirmation of a wider recovery remains elusive.
Establishing above the accumulation range and targeting $0.11985 could provide a stronger confirmation of the recent break.
Divergence Between Whale Accumulation and Spot Market Flows
On-chain data reveals a growing gap between large wallet holders and the broader market. According to Ali Charts citing Santiment data, whale wallets increased their Dogecoin holdings from 55.60 billion to 56.21 billion DOGE between October 12 and October 16. This indicates that large investors accumulated around 600 million DOGE as the price hovered around $0.08.
This pattern highlights the significance of the current support zone. Rather than chasing an upward rally, major investors are accumulating during periods of weakness, signalling increased confidence in the lower band. Should the price remain within the $0.078 to $0.08 range, this demand could support a fresh attempt to test the $0.09 to $0.10 levels.
Conversely, the spot market displays a different trend. CW8900 data indicates a net outflow of $58.73 million over the last 24 hours. The seven-day outflow reached $92.24 million, with a 30-day outflow amounting to $208.56 million. This suggests that while whale accumulation persists, broader market selling pressure continues.
Downside Risks Persist
There is a noted risk of further declines if current support levels are breached. A liquidity heat map suggests a dense liquidity cluster between $0.066 and $0.068, making it a more imminent target if prices fall below $0.078 due to ongoing high spot outflows.
Above the price, liquidity resides between $0.093 and $0.10. For a stronger short-term outlook, prices must first rebound in the $0.084 to $0.086 band and then establish themselves above $0.09.
Short and Medium-Term Outlook
The mixed short and medium-term outlook shows gradual stabilization in the $0.078 to $0.08 region. While the weekly trend break remains intact with ongoing whale accumulation, high spot outflows persist and the downside liquidity zone between $0.066 and $0.068 is still in play.
A chart shared by Sweep suggests positive divergence, as prices produce lower lows while the RSI creates higher lows, a pattern often seen when bearish momentum weakens. If supported by price action, the initial recovery zone could be revisited in the $0.10 to $0.11985 range.
If whale accumulation continues and spot selling pressure eases, the structure around $0.08 may transform into a more robust recovery platform.
