- Dogecoin whales bought the dip by accumulating more than 530 million DOGE
- DOGE entered the order block zone, an area with a large concentration of limit orders waiting execution
Dogecoin (DOGE) accumulation by whales has been on the uptrend lately. In fact, figures for the same have climbed from 23.55 billion DOGE to around 24.46 billion DOGE in just under a month.
This hike included a net accumulation of about 530 million DOGE in the last 3 days alone. As the price of DOGE fell, particularly after mid-February, the total DOGE held by these whales rose sharply – Indicative of buying the dips.
Notably, the lowest price point recorded was around $0.208 by late February, coinciding with the highest accumulation level – A sign that whales have likely been capitalizing on lower prices to expand their holdings.
Source: X
If whales continue to buy at lower prices, it could establish a stronger price support. Conversely, if these large holders start to sell, it could lead to a decline in price.
This pattern of a continuous increase and decrease in accumulation might be in sync with price adjustments.
Large concentration of limit orders
Dogecoin recently dipped into a significant order block zone, one which has historically served as a critical area of buying activity due to a high concentration of limit orders.
Specifically, the zone between $0.20 to $0.23 has been historically placed with large buy orders, anticipating potential price rebounds. At the time of writing, DOGE seemed to be hovering just above this zone at around $0.21.
This suggested that the limit orders within this range are beginning to be executed. As these orders gets filled, the buying pressure may drive the price north.
Source: X
If Dogecoin successfully consolidates above this zone and absorbs the sell pressure, it could signal a bullish trend reversal. Potential targets might initially be around $0.30, while extending upwards towards its previous highs at around $0.50.
Conversely, failure to maintain support within this order block could lead to a price drop. This could spur a potential revisit of lower support levels below $0.11 to $0.09, where the next substantial order block exists.
DOGE’s RSI bullish divergence
Finally, DOGE’s bullish divergence on the RSI hinted at potential upward momentum following a period of being oversold. Specifically, the RSI fell below the critical threshold of 30 as Trader Tardigrade noted on X.
Concurrently, while DOGE continued to form lower lows, the RSI began to diverge.
This divergence is a sign that the selling pressure has been weakening lately. This often precedes a reversal to the upside. Conversely, should the expected bullish momentum fail to materialize, DOGE could continue to test lower supports on the charts.
