Dogecoin: Can DOGE breakout despite $700M whale sell-off?

Key Takeaways

How are traders battling?

Mid-tier whales bought 4.72 billion DOGE, while the big ones sold $700 million worth of the memecoins.

Did DOGE price react?

Dogecoin demonstrated resilience in the long run, despite a skewed short-term outlook.

Dogecoin [DOGE] traded below the $0.20 level even though its price rose by a slight 2.4% in the past 24 hours, at press time. However, DOGE recorded a daily trading volume of $2.07 billion, marking a 26% increase.

Despite mixed sentiment among mid-tier and large whale investors, analysts remained optimistic, projecting potential gains beyond the $0.70 mark.

DOGE mid-tier whales differ from big whales

On-chain data showed that big whales who accumulated well over 1 billion DOGE were selling over the past two weeks.

The total capital withdrawn from Dogecoin’s market cap was about $700 million, as per BeLaunch data. This explained why the price was lagging below $0.20.

Meanwhile, mid-tier whales were actively accumulating DOGE, highlighting a divergence in sentiment between them and larger holders. Approximately 4.72 billion DOGE were purchased by wallets holding between 100 million and 1 billion tokens.

The impact of this contrasting behavior remains uncertain, leaving the market’s next move unclear.

Analyzing the short- and long-term targets

Analyst Javon Marks pointed out that if the long-term higher lows remained intact, Dogecoin could reach its all-time high (ATH) of $0.73, as indicated on the charts. This would represent a 430% growth from the current level of $0.17.

Dogecoin was also showing a bullish divergence from its RSI that was rising against a declining price action. This historical pattern suggested that a bubble could follow, similar to what occurred after the chart data from the 5th of November.

In the short term, DOGE price could hit $0.21 as the first target, followed by $0.25, even though the outlook was unclear. The upward trend followed a dip below the range between October 11th and November 3rd. The structure was still bearish, though.

Source: TradingView

The Bull Bear Power (BBP) indicated buyers were making their move, though their magnitude was wanting. For the largest part, bears had been in control since the flash crash.

Conversely, failure to surpass the upper level at $0.21 could mean the memecoin continues to fall.

Conditions for a short squeeze

The clusters of liquidity resting above the $0.17 zone set up perfect conditions for a short squeeze. More liquidity was present above the $0.17 level than below it.

The chart indicated that the surge toward $0.175 resulted from a run on short positions located above the $0.17 level. The positions in the range between $0.175 and $0.185 are crucial to breaking above the $0.21 resistance.

Source: CoinGlass

Still, a drop to levels between $0.17 and $0.165 remained viable.

In summary, Dogecoin was facing mixed sentiments; thus, it was not clear in which direction it was headed.

The long-term perspective remained bullish, even though big whales were selling. The mid-tier whales could spark short-term rallies.