Dogecoin Attracts Nearly $21 Million in Accumulation Amid Market Decline: Can Bulls Spark a DOGE Price Rally?
Despite Bitcoin’s recent decline towards the $58K level, the meme coin sector has maintained its momentum. Many top meme coins preserved their volatility during the sharp market drop, as they are generally less affected by market declines. Notably, Dogecoin’s price has rebounded from its recent low due to increased accumulation. Currently, DOGE is targeting a breakout above its resistance lines.
Dogecoin Sees Comeback in On-chain Signals
In the past 24 hours, Dogecoin experienced significant liquidations as traders on both sides faced losses due to increased market volatility. According to Coinglass, the total liquidations for Dogecoin exceeded $1.6 million, with short positions accounting for nearly $1 million of that total.
The recent market downturn has led to a massive increase in large transactions involving Dogecoin. Data from IntoTheBlock shows that, over the same period, Dogecoin saw an impressive $1 billion in large transaction volume, which corresponded with a 6.6% rise in its price.
The large transaction metric jumped from the low of $731 million, suggesting that whales took interest in the meme coin market following a loss in Bitcoin and leading altcoins.
Large transactions often exceed $100,000. The “Large Transactions Volume in USD” from IntoTheBlock tracks the total value of such transfers, indicating daily activity by major investors like whales and institutions. A spike in this volume signals intense buying or selling activity.
For Dogecoin, the large transaction volume reached 8.45 billion Dogecoin in the last 24 hours, marking a 37% increase.
Accompanying this data, the Netflow metric reveals that holders were actively accumulating more DOGE during the market correction. A shift towards the negative region in the Netflow metric indicates withdrawals from exchanges, signaling a strong “buy the dip” trend for Dogecoin.
This metric shows that approximately $21 million worth of Dogecoin (173 million DOGE) was removed from exchanges, decreasing the selling pressure on the meme coin over the past 48 hours.
What’s Next for the DOGE Price?
Dogecoin price declined heavily from its consolidated range of $0.125, resulting in a steep decline below Fib channels. However, the price took support near $0.114 and triggered a rebound later as buyers showed increased confidence. As of writing, DOGE price trades at $0.126, surging over 8.6% in the last 24 hours.
Should the price hold below $0.12, it will suggest that the bears have gained the advantage. This scenario may trigger a decline towards the psychological support at $0.10. Although the bulls will attempt to halt the downward movement at this point, a continued bearish dominance could push the price down to $0.08.
Conversely, this bearish outlook could be negated if the price continues to surge from its current position and surpasses $0.14. Such a move might lead to a rally reaching the 50-day SMA at $0.165, potentially keeping the DOGE/USDT pair within the $0.17 to $0.2 trading range.
