Dogecoin’s price continues to trade below the $0.17 level caused by ongoing bearish pressure. With robust volatility persistently hindering Dogecoin’s upward movements, major investors and traders are becoming extremely cautious about the dog-themed meme coin. Recent reports have shown a decline in accumulation among these major DOGE players.
Reduced Whale Activity In Dogecoin
Continued price fluctuations have stifled the positive sentiment around Dogecoin and its near-term prospects. Ali Martinez, a technical and on-chain expert, identified a worrying shift in sentiment among Dogecoin investors in the past few days, raising concerns about a potential extension of the current correction.
Large investors, usually classified as whales, have significantly reduced their activity in terms of accumulation over the last 96 hours. Ali Martinez reported that investors holding at least 1 million DOGE have remained quiet within the period, with no significant spikes in buying or selling.
The decline in whale activity may result in reduced market liquidity and heightened uncertainty about DOGE’s short-term price trend. Since the market has remained robustly volatile in the past few weeks, a drop in whale participation may imply a strategic stance among big players.
Prior to the dormant whale activities, these major investors were observed carrying out massive sell-offs when DOGE’s price saw a sharp rebound from the $0.13 mark to $0.16 within hours. On April 9, the seasoned expert mentioned that whales offloaded more than 1.32 billion DOGE in the space of two days.
These substantial sell-offs from big investors sparked worries about the sustainability of the rally. It comes at a crucial time for the meme coin as it struggles to surpass key resistance levels and sustain an upward trajectory.
While the cohorts were selling, wallet addresses holding between 100,000 DOGE to 1 million DOGE were gradually buying the meme coin. In another post on X, Ali Martinez revealed that the whales acquired over 80 million Dogecoin within a day as DOGE attempts to recover from a prolonged downtrend.
Such accumulation during a brief price increase implies that these investors were capitalizing on the growth in anticipation of further gains. Furthermore, it reflects growing confidence and interest in the meme coin in spite of ongoing correction.
DOGE’s Price On The Brink Of A Major Upswing
Dogecoin whale activity may have dived down, but it does not essentially stop the asset’s price from growing. Delving into DOGE’s price action, crypto analyst Javon Marks has outlined a possible upward move to new all-time highs.
Javon Mark’s analysis is based on past bullish trends, which triggered notable surges to previous highs in 2017 and 2021. With the trend resurfacing, the expert believes Dogecoin is gearing up for “another magical bullish performance to new all-time highs.”
Should similar results in 2017 and 2021 unfold, the meme coin is likely to witness an upsurge of at least +200% to +300%, bringing its price to $0.73 and above.
Featured image from Unsplash, chart from Tradingview.com
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