DOGE price daily chart printed a Dragonfly Doji, signaling a potential reversal from the current downtrend.

In latest Dogecoin news, the DOGE price daily chart printed a Dragonfly Doji, signaling a potential reversal from the current downtrend.

The latest Dogecoin news shows that the DOGE price daily chart displayed a Dragonfly Doji on Wednesday. This candle signaled a potential reversal from the current downtrend, with the immediate support level at $0.19 and a key resistance level at $0.21.

At the time of writing, DOGE was trading at $0.19, while aiming to break above the $0.20 price level, which could act as the potential bottom.

Dragonfly Doji Hints At A Shift In Momentum

The candle formed at the bottom of a declining market structure, where the DOGE price dropped from around $0.235 to a low of $0.199, marking an extended bearish phase.

The long lower wick of the Doji suggested strong buying pressure at lower levels, preventing further downside and hinting at a shift in momentum.

If bullish confirmation follows, DOGE could reclaim $0.210 as immediate resistance.

There is further upside potential towards $0.225 and $0.235 before further advancement.

A close above these levels could establish a trend reversal. However, failure to sustain buying pressure might see DOGE revisiting $0.178 before testing the next key support around $0.165.

If DOGE fails to hold above $0.190, then the reversal will weaken, increasing the likelihood of another drop.

A bullish reaction to this Dragonfly Doji could drive DOGE into a new uptrend.

However, if buyers fail to sustain momentum, then further downside risks remain, retesting lower support zones.

Dogecoin News: Whale Activity Surge

Meanwhile, there was a significant increase in DOGE holdings by whales, according to the latest Dogecoin news.

Specifically, there was a sharp accumulation of 180 million DOGE over the last 24 hours.

This uptick is reflected in the two distinct peaks on the graph, showing the precise moments of heavy buying activity.

The initial peak, which occurred in December, signaled the first significant purchase of DOGE.

This was followed by a series of smaller transactions, which contributed to a steady increase in price, indicating ongoing interest and investment in DOGE.

The most pronounced peak occurred between the end of February and the start of March, when the largest single-day accumulation happened, aligning with the purchased 180 million DOGE.

Historically, such substantial buying activities by whales can lead to a short-term price increase as the market perceives the cryptocurrency as undervalued.

This can attract further buying from smaller investors, driving the price up even further.

Conversely, if these whales decide to sell a large portion of their holdings quickly, it could lead to a sharp price drop.

Traders can keep an eye out for such actions in the latest Dogecoin news, as it could trigger panic selling among smaller investors, exacerbating the price decline.