Dogecoin Plunges 3% as Whales Begin to Buy the Dip

The Dogecoin price has plunged 3% in the last 24 hours, now trading at $0.1202 as of 3:05 a.m. EST. Trading volume has also decreased by 3.1% to $720 million, pushing the market cap to $17.5 billion. Despite the plunge, recent on-chain data reveals that Dogecoin whales have been buying, even as the meme coin’s price has dropped over the past 24 hours.

According to analyst Ali Martinez on X, Dogecoin whales have increased their holdings significantly in the last day. This observation comes from Santiment’s “Supply Distribution” metric, which tracks how much different wallet groups hold DOGE. Wallets are grouped into categories based on the number of coins they hold. For this discussion, we’re focusing on wallets that hold between 1 million and 10 million Dogecoin. 

At the current price, these wallets contain between $118,000 and $1.18 million worth of DOGE. Only large holders, or whales, fall into this category, specifically the smaller end of the whale spectrum. The timing of these purchases suggests that the whales closely watch Dogecoin, seizing any dip opportunities they see. They likely believe these dips could turn out to be profitable.

Dogecoin Price Statistics

• Dogecoin price: $0.1202
• Market cap: $17.5 billion
• Trading volume: $720 million
• Circulating supply: $145 billion
• Total supply: $145 billion

Dogecoin Price Signals a Bully Rally Ahead

DOGE has been experiencing a steady downward trend, with the bears investing by pushing the price down. All of this is about to end since the bulls are seen to have shown resistance by pulling the price upwards at the support level of $0.1877. This upward trend at the support zone has shown a high probability of the bulls forming a bullish trend.

Dogecoin price is showing a strong potential for a bullish breakout as the price is seen to be rising at the upper trend of the bearish trend giving us hope of a bullish trend ahead. Furthermore, the 50-day simple moving average (SMA) and the 200-day SMA support the probability of a bullish rally ahead as it seems to be surpassed by the market. Moreover, the 50-day and 200-day SMAs will act as the support for the market. 

The RSI supports the motive as it is seen to be flowing in the overbought zone; hence, it is awaiting a bearish trend. The moving average convergence divergence (MACD) also reinforces the bullish trend since the blue line is seen to have surpassed the orange line, on the other hand also the green bars are seen to be increasing in size.

Can the Bulls Sustain Momentum 

Despite the current downturn, the bulls are poised for a potential rally, finding strength in the current support zone. They are setting their sights on a target price of $0.2524, indicating a significant recovery and a hopeful outlook for buyers. However, the bears are still a force to reckon with. If they maintain their momentum, the price could drop further to $0.1687. In this case, sellers would stand to profit from the decline.

The market’s direction hinges on whether the bulls can overcome the bearish pressure and drive the price up or if the bears will continue to dominate and push the price down. The next few moves in the market will be crucial in determining the outcome.