Dogecoin Whales Accumulate Billions of Tokens While Analysts Eye a Potential Rally

Recent market trends suggest DOGE’s ability to maintain support at $0.17 could determine its next major move.

Dogecoin whales have been engaging in massive token accumulation, ingathering 1.7 billion DOGE in the past 72 hours alone, according to crypto analyst Ali Martinez.

This activity comes amid broader market trends showing that DOGE could be setting up for a next major move if it manages to maintain support above $0.17.

Dogecoin Whales Accumulate 1.7 Billion Tokens

The largest Dogecoin (CRYPTO: DOGE) whales have been engaging in some serious token accumulation recently.

In the past 72 hours, these high-net-worth wallets have mopped up 1.7 billion Dogecoin, suggesting institutional or professional interest in the meme coin.

This level of buying pressure could be significant and has the potential to influence the cryptocurrency's price trends in the near term.

However, it's still too early to say for sure whether the whales' activity will push DOGE in the upward or downward direction.

Dogecoin Struggles Above Key Fibos

In the short term, Dogecoin has been unable to break out of a downtrend and reclaim the $0.20 psychological level.

Over the past few months, DOGE lost multiple key support zones at $0.30, $0.25, and $0.22.

After dropping to lows of $0.17, a triple-bottom support level, it seems that buyers may be stepping in.

A TradingView chart analysis shows that DOGE is trading inside a descending channel and respecting a downward trendline.

The Fibonacci retracement levels indicate that $0.17 acts as a critical support zone, while resistance sits at $27 and $0.41.

The Relative Strength Index (RSI) currently stands at 31.52, indicating that DOGE is approaching oversold conditions.

This could hint at a possible relief bounce if buyers manage to defend this level.

Crucial Levels To Watch

Crucially, crypto analyst Ali Martinez highlighted $0.17 as a key support price point for Dogecoin.

If this level breaks, then it could open the door for further downside in the near term.

"Dogecoin is holding above the critical $0.17 price range, which could fuel a strong rebound if it manages to close above the 200-week Simple Moving Average," Martinez said in an X post on Wednesday.

"However, breaking below the triple bottom at $0.14 and the 127.2% Fibonacci retracement level could set the stage for further downside towards the 161.8% Fibonacci retracement level."

Currently, DOGE is trading down 3.15% in the past 24 hours at $0.1847.

If this level fails to hold, then lower support zones to watch out for lie at $0.14 and below.

Analyst Predicts 1488% DOGE Rally

Despite the short-term weakness, Martinez remains bullish on the longer-term trend for DOGE.

He pointed out that a multi-year trendline has been acting as critical price floor since 2017.

According to his latest projection, holding the $0.17 support could set the stage for a rally towards $2.74.

This would push DOGE well past its all-time high of $0.7316, which was reached in November 2021.

While this price target seems ambitious given the current market conditions, it aligns with historical price cycles where DOGE has seen rapid parabolic runs following long periods of consolidation.

On-chain activity has also spiked alongside the whale activity.

Martinez reported that the number of active Dogecoin addresses jumped 270% in 24 hours, rising from 71,750 to 264,000.

However, it remains to be seen whether this increase in activity will translate into sustained buying pressure that could push the price higher.

Overall, Dogecoin's near-term outlook is dependent on its ability to maintain the $0.17 as support.

While the whale activity and increase in network activity suggest growing interest in the meme coin, the broader crypto market is still trading in a bearish pattern.