TLDR
- Dogecoin price reaches key support levels as 27.4 billion DOGE are accumulated.
- Accumulation near $0.08 suggests strong support for Dogecoin amid market volatility.
- Dogecoin’s exchange supply turning positive could signal price rebound ahead.
- Whale activity and a positive net change in exchange supply point to recovery.
In recent market developments, Dogecoin (DOGE) has shown signs of recovery, with its price hovering above $0.15, marking a modest 0.53% increase in the past 24 hours. The broader crypto market has been stabilizing, and despite continued selling pressure, larger investors, known as “whales,” have started to accumulate significant amounts of DOGE. Over 27.4 billion DOGE tokens have reportedly been gathered, signaling a potential bullish trend for the token.
Accumulation of 27.4 Billion DOGE Creates Strong Support
Recent on-chain data shows that whales have been accumulating large amounts of DOGE, especially within the $0.08 price range. According to Glassnode’s cost basis distribution heatmap, there is a high concentration of wallets holding DOGE between $0.079 and $0.082. This region is now considered a strong support zone, and such accumulation levels often indicate confidence from investors in the price stability at these levels.
Historical data suggests that when significant accumulation occurs during market corrections, it can create a platform for future price growth. This is especially true when large investors show faith in a particular price range, as they are generally well-positioned to influence price movement. Investors may see this as an opportunity to buy into Dogecoin at a lower price, anticipating future gains when the market turns bullish.
Exchange Supply Shifts to Positive Territory
Another key indicator pointing to potential Dogecoin recovery is the recent shift in its exchange supply. For a long period, DOGE experienced net outflows from exchanges, which typically signals a lack of market confidence. However, according to Glassnode, the net exchange position for Dogecoin has turned positive in recent weeks. This shift suggests that more DOGE is moving back onto exchanges, which could indicate that investors are positioning themselves for a price rebound.
In previous instances when such a net change occurred, Dogecoin saw sharp increases in price. This trend has drawn the attention of analysts and investors alike, as it suggests a potential turning point for the coin. As whales continue to accumulate DOGE, the increasing supply on exchanges could set the stage for a new price rally, especially if demand continues to rise.
Dogecoin Price Looks to Break Above $0.20
With the accumulation of billions of DOGE tokens by large investors and the positive net change in exchange supply, the outlook for Dogecoin looks promising. If the current trend continues, DOGE could break above the $0.20 mark. Such a move would represent a significant recovery from recent lows, and investors will be closely watching for any signs of continued upward momentum.
As the broader crypto market stabilizes, Dogecoin’s potential to regain value seems likely. The price is still well below its all-time highs, which may encourage both retail and institutional investors to step in as the coin begins to show recovery signs. Whales, who often play a crucial role in driving price trends, appear to be betting on a stronger future for Dogecoin.
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