Dogecoin Defies Correction, Surges 78% After Whale-Fueled Rally

Despite the ongoing market correction, Dogecoin surged 78% in the last week of March, defying the trend. The price broke past the $0.2 resistance, signaling potential for further recovery. Whale activity also played a significant role, with large investors accumulating 1.40 billion DOGE worth $280 million, indicating confidence in the coin's future performance.

Dogecoin Defies Market Correction, Surges 78% in Aggressive Rally

Amidst the prevailing market downturn, Dogecoin (DOGE) has exhibited remarkable resilience, embarking on an aggressive rally in the fourth week of March. Since dipping to a low of $0.122, the coin's price has surged by an impressive 78%, reaching $0.21. This upward trajectory has recently surpassed the previous resistance level of $0.2, signaling the potential for further recovery.

Whale Activity Fuels V-Shaped Recovery

Coinciding with Bitcoin's recovery from $60,000, Dogecoin rebounded from the combined support of the 50-day exponential moving average (EMA) and 61.8% Fibonacci retracement level. The subsequent V-shaped reversal, accompanied by a significant increase in trading volume, indicates a surge in buying momentum and unwavering enthusiasm among memecoin enthusiasts.

Prominent trader @alicharts has observed a substantial increase in interest in Dogecoin from large-scale investors, commonly known as "whales." Over the preceding two weeks, these whales have accumulated approximately 1.40 billion DOGE, translating to a significant investment of $280 million. This activity underscores the robust confidence of high-net-worth individuals in Dogecoin's long-term market prospects.

Round-Bottom Pattern Emerges as DOGE Surpasses $0.20

On March 28th, DOGE broke out decisively above the resistance level of $0.206, reaching a 28-month high of $0.2288. Despite a temporary intraday loss of 2.4%, the coin price is expected to retest the broken resistance, which now serves as a potential support level.

The sustained breakout should bolster buyers' resolve to pursue higher target prices, namely $0.27 and $0.3. Broader chart analysis reveals the formation of a rounding bottom pattern, which suggests a gradual shift from a downtrend to an uptrend. This U-shaped recovery pattern typically indicates long-term sustainability.

Technical Indicator Analysis

• Exponential Moving Average (EMA): The 50-day EMA continues to act as a pivotal support during market corrections.
• Relative Strength Index (RSI): The RSI slope, currently exceeding 70%, indicates that buyers are assertive and willing to acquire DOGE at a premium.