- Dogecoin sits in a prime accumulation zone, with strong whale buying activity indicating renewed market confidence.
- Key support levels between $0.05–$0.13 are holding, suggesting a potential trend reversal is forming.
- Analysts set long-term targets at $0.50, $1, and $2 if bullish support remains intact.
Dogecoin appears to be showing some early indicators that it could turn out stronger, as analysts point out the important accumulation phase that the crypto is going through.
According to an analyst, important support levels are starting to see some significant activity, courtesy of the renewed interest exhibited by the whales. This could mark the beginning of the trend reversal for the crypto.
Dogecoin Enters Prime Accumulation Zone
In a new analysis, well-known analyst Crypto Patel observes that the current position of the Dogecoin cryptocurrency is inside the “Prime Accumulation Territory.” At the same time, Crypto Patel emphasizes that the DOGE cryptocurrency is only 73% below the December 2024 high and 83% below the historical high.
Crypto Patel identifies two major price levels. Firstly, there lies an order block and an accumulation point that is marked as the most optimal region for buying, ranging from $0.13 to $0.09. After that, there exists an area marked as the demand zone, which comprises prices ranging from $0.08 to $0.05. This section of the price chart always witnesses strong buying activity.
The data for the whales additionally indicates renewed confidence. On-chain information illustrates that 500 million DOGE, which stands approximately $80 million, was acquired during periods of market slump, indicating that whales are positioning themselves for future growth.
Crypto Patel sets up trading levels for the future as well, which are $0.50, $1, and $2, and specifies that for DOGE to pursue such levels, it needs to hang above the bullish order block. This indicates that if the support levels are maintained, DOGE would prepare for an upward trend.
At the time of writing, DOGE is trading at $0.1492 with a 24-hour trading volume of $2 billion and a market cap of $24.18 billion. The price has gone down 0.66% over the last 24 hours, suggesting that interest in the meme coin is gradually returning.
Also Read | Dogecoin Gains Traction Amid Market Volatility, Could $0.57 Be Next?
Dogecoin Shows Early Trend Reversal Signs
Meanwhile, analyst BitGuru highlighted that the early indicators of a trend reversal for Dogecoin are beginning to emerge. DOGE had broken above the demand area and was beginning to create the higher low formation that often marks the beginning of the recovery phase.
BitGuru continues, saying that it appears that DOGE, as it looks to return to the mid-range area, needs to break through the dotted resistance line for it to create enough space for the potential recovery.
As the whale holdings are on the rise, the chart patterns are strengthening, and the critical support levels are intact, analysts think that Dogecoin could be heading for an important turning point. If the buying force keeps intensifying, DOGE could be preparing for an important rally.
Also Read | Dogecoin (DOGE) Surge Forecast: 14% Rise by Jan 1
