After dropping more than 7 percent last week, Dogecoin (DOGE) has made a strong recovery from a key bullish breakout. The meme coin, with a fully diluted market valuation of approximately $16.2 billion and an average daily trading volume of around $799 million, gained over 2 percent in the last 24 hours, pushing its price above the crucial $0.11 support level during early Monday trading in the New York session.
The Dogecoin price rebound coincided with the Bitcoin price spike above $63k earlier today, as investors repositioned their portfolios to match the escalating geopolitical tensions.
Whale Investors Are Buying – Should You Too?
According to on-chain data from IntoTheBlock, large Dogecoin holders acquired over 2 billion DOGE units, valued at more than $220 million, in the past week. Notably, last week’s whale accumulation marked the highest level since January, indicating increased interest from major investors.
The Dogecoin network, secured by a proof-of-work (PoW) consensus mechanism, has seen a rise in crypto miners, particularly after Ethereum transitioned to a proof-of-stake (PoS) model. Currently, the Dogecoin network boasts over 7.4 million non-zero addresses, highlighting its growing user base.
DOGE Price Technical Analysis
From a technical perspective, Dogecoin is forming a fractal pattern reminiscent of previous macro bull runs. After experiencing a retracement of over 65% in the past seven months, the analysis suggests that Dogecoin is well-positioned to embark on its next major bull run toward a new all-time high in the near term.
Recent observations show that DOGE successfully retested the bullish breakout from a daily falling logarithmic trend. Additionally, it has rebounded from the 50-day moving average (MA), signaling that bullish momentum is gradually gaining strength.
Key Levels to Watch
However, for DOGE to maintain its upward trajectory, it must rally above the 50 and 200 MAs on the weekly timeframe. The formation of a death cross last year raises concerns about potential further retracement in the near term if these resistance levels are not overcome.
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The Dogecoin price is on the move. Will it reach new heights, or will it face a setback?
Source: https://coinpedia.org/price-analysis/dogecoin-price-analysis-doge-price-rebounds-as-whale-investors-accumulate-over-220-million/