Dogecoin Clings to Its Key Support Line

The Dogecoin is currently facing a pivotal moment in its price trajectory. After briefly dipping below $0.27 in December, its price quickly rebounded, forming a structure that Trader Tardigrade, a closely followed analyst, described as a “selling climax” in a post on X (formerly Twitter) on January 10, 2025. This technical pattern, often observed before a bullish reversal, indicates an exhaustion of sellers and a gradual return of buying pressure.

Now, Dogecoin is fluctuating around $0.336, a level identified as a strategic pivot point. According to the analyst, the crypto is undergoing a “secondary test”, a crucial step that allows for the assessment of the support located at $0.315. Indeed, if this zone withstands attempts to break it, it could serve as a springboard for a bullish recovery. In this case, a renewed confidence from investors could enhance the positive momentum and pave the way for a new rally in the coming sessions. Conversely, a breach of this threshold would expose DOGE to a more pronounced pullback, which would jeopardize the prospects of a quick rebound.

The interest of whales, those investors who hold large quantities of Dogecoin, is a key indicator of market evolution. According to on-chain data from Santiment, these wallets, which hold between 10 and 100 million DOGE, have accumulated over 470 million tokens in just 48 hours. This wave of purchases has increased their total holdings to 22.56 billion DOGE, a high for the last 30 days.

Such massive accumulation is not random. Historically, the movements of whales often precede significant price variations, as these actors influence liquidity and market sentiment. Their current strategy suggests an anticipation of a bullish movement, which reinforces the likelihood of a reversal. Trader Tardigrade shares this analysis and believes that a breakout from the current resistance could propel Dogecoin to $0.66 in the coming weeks. If this trend is confirmed, it could mark a major turning point for the crypto, attracting more investors and fueling a sustainable bullish momentum.

The coming days are crucial for Dogecoin. If the support around $0.315 manages to withstand selling pressures, it could serve as a springboard for a bullish recovery, reinforced by whale accumulation. This momentum could encourage a gradual return of confidence in the market. However, the crypto sector remains unpredictable. A break of this key level would expose Dogecoin to a more pronounced correction, which would nullify hopes of a quick rebound. The evolution of technical indicators and the behavior of major investors will therefore be decisive in confirming or invalidating the hypothesis of a rebound in the weeks to come.

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