Will Whale Inflows Rescue Dogecoin After Its 14% Price Drop? Here’s What We Know

Dogecoin (DOGE) recently experienced a sharp 14% price drop, erasing its September gains within two days. This decline has raised concerns among investors about the coin’s future performance. However, there are strong signs that crypto whales may be preparing for a potential price rebound.

Whales Step in to Support Dogecoin

Despite the sharp correction, whales are showing renewed interest in Dogecoin. The price-DAA (Daily Active Addresses) divergence indicator has signaled a potential buying opportunity. As the price fell, the number of active investors on the Dogecoin network rose, suggesting accumulation. This pattern often indicates that market participants expect a price recovery soon.

*DOGE Price DAA Divergence. Source| Santiment*

Typically, when a coin’s price drops but network activity increases, it hints at investor confidence in future rallies. In Dogecoin’s case, investors are capitalizing on lower prices, which could point to the beginning of a recovery. This uptick in activity supports the view that the meme coin is entering an accumulation phase.

Whale Inflows Suggest Confidence in DOGE

Crypto whales are making significant moves that signal their faith in a price rebound. In the past 24 hours, large addresses holding at least 0.1% of Dogecoin’s supply have seen inflows of 417 million DOGE, valued at approximately $45 million. This marks the highest inflow in a month, reinforcing the possibility of an imminent rally.

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Whales typically have the power to shift market trends, and their activity suggests growing confidence in Dogecoin’s recovery. These large inflows indicate that influential market players are positioning for a potential price bounce.

Price Outlook: Testing Key Resistance Levels

*Dogecoin Price Analysis. Source| TradingView*

Currently trading at $0.107, Dogecoin must turn this level into support for a recovery to take shape. If it can breach the $0.118 resistance, a rally towards $0.130 becomes possible. However, failure to hold above $0.107 may lead to further consolidation. Dogecoin has often consolidated between $0.107 and $0.094, and failing to hold support could delay its recovery.

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.