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Dogecoin trades without major variations as the rally remains between $0.33 and $0.31 for over a week. This indicates a major drop in volatility, due to which a major shift in the trader’s attention has been recorded away from the token. Despite this, the token has driven huge interest in the whales more than market participants, as they have been quietly accumulating over 90 million DOGE in the past few days.
This accumulation indicates the whales are trying for a huge DOGE breakout by mounting a buying spree. Interestingly, these accumulations by the whales do not appear to hold the token for a long time, as they could initiate a significant pullback soon. As per the data from Coinglass, a huge cluster of liquidation leverage has been accumulated at $0.42 & later at $0.49
The data suggests more than $70 billion has been leveraged between $0.41 and $0.43, which turned into a strong resistance level. Therefore, it appears that the whales are seeking high-liquidation areas to swiftly execute short trades around these levels. If the price manages to sustain and secure above these levels, then the token could encounter another resistance between $0.485 and $0.5 where more than $50 billion has been accumulated.
What’s next? Will the DOGE price ever reach $0.5?
The historical DOGE price chart suggests the token is repeating its previous trend but the technicals display a diverse trend, which is concerning. Although the price is deviating similarly as before, the MACD suggests a drop in the buying pressure. On the other hand, the token’s accumulation seems to have lowered with a slight rise in the distribution levels. Hence, this suggests a potential drop in the coming days, just below $0.3, that may attract a huge liquidation pushing the price towards the higher targets.
Previously, when the Dogecoin price triggered a breakout in 2021, the market turned bullish and initiated a bull run. Therefore, watching whether history repeats and the potential impact of the breakout over the market would be interesting.
