Dogecoin at a Crossroads: Will $0.12 Support Hold or See a Breakout?

Massive Whale Sale Drives Dogecoin Below $0.1: What’s Next for DOGE?

Dogecoin (DOGE) has experienced a significant decline in the past week, with a 14.98% price drop over the last seven days. The cryptocurrency now trades at $0.1342, a 1% reduction in the last 24 hours. Despite this decline, analysts suggest that DOGE is poised for a potential reversal amid whale accumulation.

DOGE Price Analysis. Source| TradingView

Decline and Consolidation

The recent price drop has led to a stabilization of DOGE around the $0.123 level in the short term. The prices are likely to consolidate between $0.12 and $0.15 in the near future. However, a bullish long-run scenario could see DOGE reach the $0.17 to $0.2 range.

Bullish Reversal Signals

The Relative Strength Index (RSI) currently stands at 36.61, indicating the possibility of an upcoming bullish run. If the market holds and the RSI rises, a potential reversal could be on the cards.

Low Liquidation Rates

Source| Coinglass

Market data from Coinglass reveals low liquidation rates for both short and long positions in the last seven days. On June 15th, DOGE reported meager liquidation of $61.6k for shorts and $139.2k for longs. This suggests market consolidation and stability.

Whale Accumulation

Source| Santiment

According to Santiment data, whales with over $5 million in DOGE are increasingly accumulating their assets. At the time of writing, these whales account for over 52% of the total DOGE assets.

Positive Market Sentiment

The low liquidation rates and increased whale accumulation imply a positive market sentiment for DOGE. Investors remain optimistic, as evidenced by the ongoing accumulation by large players.

Potential Outcomes

If the negative market sentiment persists, DOGE may need to test the $0.12 support level. However, if the selling pressure eases, the market could see a reversal and a breakout above the $0.169 resistance level.

In conclusion, Dogecoin is facing a potential reversal as whales continue to accumulate their holdings. While the short-term outlook suggests consolidation, the long-term prospects remain positive, with the possibility of a bullish breakout if the market conditions improve.

Read Also: Dogecoin Price Drops Below $0.15: What’s Next?

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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