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Are Dogecoin Whales Setting a Trap Above $0.4? Here’s What to Expect from DOGE Price Rally
Dogecoin has been trading relatively flat for over a week, stuck between the ranges of $0.33 and $0.31, indicating a significant drop in volatility. This lack of movement could be attributed to a shift in traders’ attention away from the token. Contrary to this, Dogecoin whales have been quietly accumulating over 90 million DOGE in recent days.
This accumulation hints that these large-scale investors are attempting to orchestrate a massive breakout by mounting a buying spree. The question remains, will they succeed? It appears that these whales are targeting high-liquidation areas, as indicated by data from Coinglass, to swiftly execute short trades around these levels. This strategy has the potential to create a significant price drop if executed effectively.
The data shows an alarming $70 billion in leveraged positions has been accumulated between $0.41 and $0.43, creating strong resistance at these levels. If the DOGE price can manage to sustain and break above these points, it may then encounter another hurdle between $0.485 and $0.5, where more than $50 billion has been stacked against a potential price increase.
Historical Dogecoin data suggests that the token is repeating its previous trend; however, technical indicators indicate a stark contrast in buying pressure. The MACD suggests a decrease in purchasing power, while DOGE’s accumulation appears to have slowed with an uptick in distribution levels. This combination may signal a potential downturn for the cryptocurrency in the near future.
In the event that this breakout does occur, it is essential to monitor whether history repeats itself and the market responds similarly as it did in 2021.
Source: coinpedia.org
