Dogecoin Comeback? Whales Accumulate as Charts Signal Potential Rally

• Whale accumulation signals renewed investor confidence in DOGE’s market recovery.
• DOGE tests key $0.167 support, with potential upside toward $0.35 if held.
• Liquidation trends suggest traders are preparing for a more stable price range.

Dogecoin (DOGE) has been feeling the squeeze during the crypto market’s recent two-month downturn. However, even with this pressure, significant activity from large investors and increasing user engagement are suggesting a potential for bullish momentum. 

Data from Santiment shows that the number of wallets holding at least one million DOGE has been on the rise, indicating increased accumulation. This surge in large holdings could signal renewed confidence from investors who anticipate the market will turn around.

Also, the number of active Dogecoin addresses has reached a four-month high, surpassing 150,000 per day. This highlights growing adoption and utility for the meme coin.

Critical Price Levels to Watch

Besides the accumulation by large holders, technical indicators suggest that DOGE is at a crucial support level. 

Crypto analyst Ali Martinez points out that Dogecoin is currently testing a key support zone around $0.167. This level aligns with the 0.618 Fibonacci retracement and the lower boundary of an ascending channel. 

Historically, DOGE has rebounded from these kinds of trendlines, leading to significant upward movements. If buyers can maintain support at this level, the price could aim for $0.35 and potentially go even higher.

However, if the price breaks down below this support, it could trigger a decline towards $0.11, leading to a more bearish outlook.

Market liquidity also plays a significant role in how Dogecoin’s price moves. The latest liquidation data indicates that large spikes in short liquidations tend to happen at the same time as DOGE rallies, while long liquidations are more common during price declines. Key liquidation levels are around $43.14 million and $86.29 million. 

What Does This Mean for Near-Term Trading

As DOGE stabilizes near $0.30, liquidations are becoming more balanced between long and short positions. This shift suggests that traders are positioning for a more stable trading range in the near term.

From a momentum perspective, the Relative Strength Index (RSI) is currently at 37.16, signaling that Dogecoin is getting close to being oversold. While not quite there yet, this level suggests that buying interest might be picking up. 

The Moving Average Convergence Divergence (MACD) is still negative, with the MACD line at 0.0020020 and the signal line at 0.0199476. However, the histogram is showing signs of weakening selling pressure, hinting at a possible reversal in trend.