Price oscillates downward, making it difficult to maintain upward momentum
Since rising to a local high of $0.16, Dogecoin (DOGE) has struggled to maintain its upward momentum on the charts. In the last 48 hours, its price plummeted from $0.16 to a local low of $0.157. As of the time of writing, the trading price of DOGE is $0.159, with a 24-hour decline of 2.71%.
Whales enter the market to buy at the bottom, releasing a positive signal
However, the fluctuations in Dogecoin prices have created buying opportunities for large institutions. In the past two days, whale investors have flooded into the market, buying up large quantities of Dogecoin.
According to analysis by Ali Martinez from Santiment, Dogecoin whales purchased over 800 million DOGE tokens in just 24 hours. Typically, increased holdings by whales are seen as a bullish signal, indicating they believe the current exchange rate is low enough to accumulate and are confident about the market's prospects.
Multiple data points suggest a shift in market sentiment
From the perspective of Dogecoin's net flow in the spot market, the past 10 days have shown negative values, indicating a significant increase in buying activity, which means that the whales' purchasing behavior has led other market participants (especially retail investors) to follow suit.
In addition, the selling volume of Dogecoin futures has sharply decreased from $3.43 billion to $238.4 million in the past week, indicating a significant reduction in the number of investors placing aggressive sell orders. Short sellers are retreating from the market, losing confidence in further price declines, and a decrease in selling pressure often precedes a price increase.
Downward pressure persists, future trends remain a mystery
Despite the active buying from large holders of Dogecoin, the downward momentum remains strong. Recently, the Stoch RSI indicator for Dogecoin formed a bearish crossover with the signal line within the past 24 hours, peaking at 86.9, indicating that DOGE is under strong downward pressure, and the downtrend may continue.
Therefore, even if buyers return to the market, DOGE is likely to experience a decline before rising again. If the downward trend continues, Dogecoin may drop to $0.156 before attempting a rebound; however, as buyers continue to exert influence, if their impact begins to show, Dogecoin is also expected to rebound strongly to $0.170.
