Dogecoin (DOGE): Volume Jumps 121%, Will It Rebound?

Dogecoin (DOGE) is witnessing a drawdown in its price action as the memecoin threatens to drop below the critical $0.20 support level.

In the past 24 hours, its price has lost 6.84% to trade at $0.2256 in the cryptocurrency market.

Whale Dump Sparks Volatility, But Investors Rally

Despite this drop in price and the continued dump-off by DOGE, investors’ confidence has grown within the same time frame.

The trading volume soared 121.14% to 1.6 billion in the last 24 hours. Analysts say everything about DOGE has remained bullish except for price.

The mixed signals have left many wondering where the dog-themed memecoin is heading next.

Some have argued that Dogecoin’s rebound attempt might have been affected following a significant transaction by a whale.

As reported by The Coin Republic, a Dogecoin whale recently dumped 100 million DOGE on the Binance exchange.

The transaction, valued at approximately $25.42 million, triggered uncertainty as it exerted a fresh selloff pressure.

However, investors soon rallied and engaged in active trading that has now grown to the current level.

Some market watchers predict that if the token sustains investors’ current interest, a price rebound is likely for the memecoin.

This development, however, rests on DOGE’s ability to stay above the $0.20 price level.

According to on-chain analyst Ali Martinez, if DOGE remains resilient amid the price challenges, the trading volume could trigger a reversal.

Martinez anticipates a potential 25% increase in Dogecoin’s price following the symmetrical triangle pattern in DOGE’s trading chart.

Other analysts consider that DOGE could have entered a consolidation phase, historically preceding a price increase.

A spike in the price of DOGE could hit $1.30 in the long run as projected.

Can DOGE Price Defend the $0.20 Level?

Meanwhile, while the Dogecoin community awaits Martinez’s price prediction to come to pass, CoinGlass data shows that the total liquidation on DOGE was $12.27 million.

Long position traders registered $11.24 million of this amount, while short traders registered $1.03 million.

This liquidation imbalance reveals that traders betting on a DOGE price increase were caught off guard by the declining price.

The one-sided liquidation pattern aligns with the current crash in Dogecoin’s price.

Some analysts have suggested that DOGE’s current bearish price might have been triggered by broader market volatility.

Notably, Bitcoin, Ethereum, and other crypto assets suffered a pullback following the Bybit hack attack.

This has affected investor sentiment on DOGE and other coins in the crypto space.

Others argue that the long position liquidation worsened the decline for DOGE.

With $11.24 million wiped out in long liquidations, the volume was significant enough to impact the price of the memecoin.

Are Whales and Retail Traders Accumulating DOGE?

The spike in trading volume amid this liquidation suggests buyers will likely take advantage of the dip.

Retail traders and whales might have decided to accumulate DOGE, expecting a price rebound.

With DOGE threatening to decline further towards the psychological support of $0.20, market watchers have expressed concerns.

DOGE might slide further if the exact price decline hits Bitcoin. The positive shift is that the trading volume has stayed high.

That suggests likely accumulation. This development has the potential to trigger a price reversal.

Primarily, if Dogecoin whales consider this an opportunity, their action might positively impact the price of the memecoin.