Dogecoin (DOGE) is facing ongoing bearish pressure, with its price declining by 16% over the past week. However, this sharp correction has brought DOGE into a high-confluence support zone, where a potential reversal could occur. On-chain data also shows that whales are actively accumulating — scooping up 280 million DOGE in just the last 24 hours.
As of June 5, DOGE is trading at $0.189, reflecting a 4% intraday loss. Its recent downtrend is likely influenced by Bitcoin’s decline, as BTC dropped below the $105,000 level once again.
DOGE Approaches High-Confluence Support Zone
Dogecoin has now entered a confluence zone between $0.177 and $0.182 — an area where several technical signals align, indicating strong support. If both retail and whale investors step in, the price could rebound from this level.
The first key technical formation is a falling wedge pattern, active for nearly three weeks. The lower trendline of this wedge intersects with the current price zone, suggesting that if DOGE bounces here, it could confirm a bullish breakout typically associated with such a pattern.
Additionally, this zone aligns with the 161.8% Fibonacci extension level, often considered a powerful support area. A successful defense of this level could open the door for a price move back to $0.20 and potentially toward $0.25.
For the bullish scenario to gain traction, the Relative Strength Index (RSI) must climb above 50. Currently, RSI is at 39 — still in neutral-bearish territory. A break above 50 would indicate a shift in momentum toward the bulls.
Whales Accumulate 280 Million DOGE
Data from blockchain analytics platform Santiment reveals that whale addresses — those holding between 10 million and 100 million DOGE — have been quietly accumulating during the price dip.
Over the past 24 hours, the amount of DOGE held by these addresses increased from 24.19 billion to 24.47 billion, meaning whales acquired approximately 280 million DOGE — worth about $50.4 million at the current price.
This level of accumulation marks the highest whale holdings since mid-March, suggesting growing confidence in a price rebound.
Outlook: Recovery Possible, But Obstacles Remain
Despite strong whale activity and technical support, Dogecoin still faces hurdles. The current bearish sentiment could limit immediate upside unless a strong catalyst emerges.
Some analysts warn that DOGE could still dip to $0.165 before staging a meaningful recovery. However, if support holds and accumulation continues, the coin may rebound toward $0.25 in the near term.
As DOGE consolidates near this critical support zone, traders will be closely watching for signals of a confirmed trend reversal.
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