Despite facing a significant market downturn, Dogecoin (DOGE), a leading memecoin valued at $38.4 billion, has shown remarkable resilience. Following a drop to $0.26 on Thursday, the cryptocurrency experienced a staggering 25% decline due to intense selling pressures. However, analysts believe this dip could open doors for recovery.
What Does the Price Trend Indicate?
After peaking at $0.48 in December 2024, Dogecoin has been on a downward trajectory. Nevertheless, its price chart reveals an ABC correction pattern, hinting at a potential bullish trend ahead.
How Are Whales Responding to Market Trends?
Recent data suggests that wallets holding between 10 million and 100 million DOGE have purchased 750 million coins during the downturn, indicating strong support at the $0.20 mark, where the price stabilized. This backing could trigger a recovery similar to what was observed in mid-December.
Key Observations:
- Dogecoin displayed a significant price drop to $0.20, finding a solid support level.
- On-chain data shows that large holders are accumulating DOGE, enhancing market confidence.
- The daily RSI indicates an oversold condition, which may precede a price reversal.
For Dogecoin to return to its previous high of $0.48, a broader market recovery is essential. Market participants are vigilantly watching key price levels that will influence DOGE’s trajectory in the upcoming weeks.
