Dogecoin (DOGE) Accumulation Hits $275M After 30% Correction — Trend Still Unclear

Key Takeaways

• Dogecoin whales have accumulated 1 billion coins since Feb. 27, leading to a price increase of $0.24.
• DOGE’s price has retraced to $0.22 but remains below the falling upper trendline on the daily chart.
• The AO shows rising bullish momentum and has shown a potential to rise depending on several factors.
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Dogecoin (DOGE), the memecoin with the highest market cap, has seen its price rebound by a mild 6% hike. This comes after Dogecoin’s price dipped by 30% last month.

DOGE’s On-Chain Data Signals Bullish Trend

At the end of February, Dogecoin’s price appeared ready to slide below $0.20. However, the memecoin climbed to $0.24 over the weekend before its recent retracement to $0.22.

This recovery happened due to the broader market jump, which was triggered by the positive development of the White House. While DOGE might have pulled back, on-chain data shows this could be temporary.

One indicator supporting this bias is the balance of addresses — particularly the large buyers. According to Santiment, the balance held by addresses who own between 100 million and 1 billion coins stood at 24.26 billion on Feb. 27.

That figure has risen to 25.32 billion today, indicating that these key stakeholders purchased over 1 billion DOGE during the dip. At Dogecoin’s current price, this is worth approximately $275 million.

Historically, a surge in buying pressure indicates a forthcoming price increase for a cryptocurrency. On the other hand, if these stakeholders decide to sell off in large quantities, it can trigger a price correction.

Given the current accumulation pattern, Dogecoin’s price appears ready to resume its uptrend — provided this trend continues.

Rally Lacks Confirmation

However, despite the potential for growth, the technical outlook suggests that the rally has not yet been fully confirmed. On the daily chart, DOGE’s price continues to trade below the descending upper trendline that began forming on January 18.

This trendline acts as a key resistance level, and a breakout above it would be crucial for confirming the uptrend. Until then, the price might remain constrained within this bearish structure.

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Besides that, the Money Flow Index (MFI) is below the neutral line, indicating that capital inflow into DOGE might not be enough to sustain the upswing.

If this remains the same, then Dogecoin’s price is unlikely to climb above $0.25, depending on the $0.20 support.

DOGE Price 4-Hour Chart Shows Something Else

Meanwhile, the 4-hour chart presents a different bias. During this timeframe, the Awesome Oscillator (AO) reading has jumped to positive territory.

The AO measures momentum using historic and recent price movements. When the AO rating is negative, the momentum is bearish.

The positive reading suggests that momentum is shifting towards the bullish side.

If this momentum persists, Dogecoin’s price could rise to $0.25, aligning with the 0.236 Fibonacci retracement. In a more optimistic scenario, DOGE could push up to $0.30.

However, if DOGE fails to break above the $0.23 resistance and faces rejection, it could trigger a pullback, potentially bringing the price down to $0.18.