Dogecoin Price Forecast: Is this Unusual $25M Signal Bullish?

Dogecoin (DOGE) price is battling to defend the $0.08 territory after dipping 10% within the daily time frame on Feb 21. On-chain data shows that whale investors have are still buyingm illions of dollars worth of DOGE despite the price downtr

Do the Dogecoin bulls have enough in the tank to stage a decisive attempt to reclaim the $0.1 area this week? 

Dogecoin Whales Enter 260 Million Buying Spree 

The crypto market suffered a significant downturn on Jan 23 amid billion-dollar sell-off from Grayscale ETF investors. Interestingly, while other mega cap meme coins like Shiba Inu and PEPE and BONK all suffered double-digit retracement, DOGE price maintained a relatively more resilient performance with only a -6% deficit. 

Dogecoin on-chain data trail shows that a group of strategic whale investors rapidly buying the dip could be behind DOGE’s steady price action in the last two weeks. 

Santiment’s chart above depicts real-time changes in the balance of whale wallets holding at least 10 million DOGE ($783,000). 

The red trendline shows that the whale wallets held a cumulative balance of 44.75 billion DOGE as of Jan 23.

In an unusual trend, as the market downturn set-in, rather than join the sell-off the whales entered a buying spree instead. At press time on Feb 5, their balances now stand at 45 billion DOGE. 

Effectively, they have capitalized on the price dip to acquire 250 million DOGE worth approximately $20.5 million between Jan 23 and Feb 5.

The whales buying pressure partly explains why DOGE price has managed to avoid a major bearish downswing below $0.08 while rival meme coins caved. 

Notably, historical trends show that previous DOGE price rallies have often been preceded by a significant buying wave from this cohort of whales. 

If this trend repeats, DOGE traders can anticipate another uptrend toward the $0.1 area the week ahead. 

Dogecoin Price Forecast: $0.089 is the Key Resistance to Beat

Drawing inferences from on-chain data analysis, Dogecoin price looks set to start the week on the front foot, possibly retesting the $0.01 area.

However, the Bollinger band technical indicator suggests that the bulls face major resistance around $0.085. 

At press time, Dogecoin is currently trading at $0.079, just below the 20-day SMA price signaling bullish resurgence. A decisive breakout above the $0.085 sell-wall could trigger a major rebound toward $0.1 as predicted. 

Still, there’s a chance the bears could negate this narrative if the DOGE price loses the $0.07 for the first time in 2024. However, as depicted by the lower Bollinger band, the bullish support buy-wall at $0.075 could prove daunting.