Movements by dogecoin (DOGE) whales were recorded during June 18, 2024. This is the sale of 99,300,000 DOGE, which is equivalent to more than 12 million dollars at its current price ($0.12). In turn, statistical graphs from IntoTheBlock show that the percentage of DOGE holdings by whales decreased from 45.3% to 41.3%. “Whale” is the term used to refer to those investors with a large amount of money. Through their movements they could impact the price action of an asset and, thus, cause increases or decreases in those assets by the simple law of supply and demand. So that The transactions found in DOGE are linked to the fall in the price of dogecoin during this week. However, DOGE has been in decline for a longer time, since during the last month it fell by 25%. The curious thing about the reported sales is that they coincide with the fall of DOGE price to the key support zone of approximately $0.12, where the cryptocurrency is currently listed. There, the price bounced three times between the end of February and the beginning of May 2024. This information can be seen in the chart provided by the financial analysis platform TradingView. The blue line reflects the mentioned support at $0.12, while the orange circles reflect bounces off that support.
DOGE price chart expressed in daily candles. Source: TradingView.
These support zones reflect greater market interest compared to other areas of an asset's price.. In other words, these supports (approximately $0.12 in DOGE) represent an area where there was a greater confluence between supply and demand. In turn, another important data that is extracted from the TradingView chart is that The last three times it touched support in the $0.12 region, DOGE price rose.
$0.12 served as support for DOGE previously. Source: TradingView. From the chart, then, the question would be how far DOGE could go. To try to solve or approximate this answer, resistance zones can be identified. They work in the same way as supports, but in areas of price interest higher than what an asset currently has. Thus, looking at what could happen with DOGE having bounced off the same support three previous times and if today's candle closes above the 0.12 support, The next resistance could be established in the area of 0.13 dollars. Extending the analysis a little further, resistance is also found in the areas of $0.14, $0.16 and $0.17. The green arrow directs the price of DOGE towards its next resistance at $0.13, while the yellow one does the same with the region of 0.14 dollars. The orange and purple arrows point towards the resistances of 0.16 and 0.17 respectively. Assuming DOGE price action repeats itself from what it has done in the past, it could be assumed that the next movement would be bullish and I would look for any of the resistances mentioned.
Resistance zones that DOGE price could look for. Source: TradingView. Regarding these optimistic DOGE price speculations, Spanish analyst SantinoCripto predicted that the DOGE price would reach $1.23 in around 8 or 9 months. However, the same exercise could be carried out thinking that today's candle would close below the support of 0.13. In this case, the DOGE price could fall to the nearest support, in the $0.10 area.
The red arrow indicates the downward movement if DOGE falls to the nearest support. Source: TradingView. Another considerable piece of information to take into account is the current market sentiment regarding DOGE. According to the analysis of the CFGI platform, this feeling is closer to fear than greed. Among the indicators it uses to determine that analysis are volatility, volume, DOGE dominance, and others. All of these express a negative or very negative feeling. On the other hand, of all of them, the only one that is in a positive position is the sentiment indicator called «social.» Regarding this, it can be presumed that investors think that, with the price in a negative situation, this bear market could be taken advantage of to accumulate DOGE.
With these indicators, the platform measures the average between fear and greed. Source: CFGI It is worth clarifying that dogecoin is a memecoin with no greater use than being an Internet joke. In recent years it has been promoted by tweets from the American businessman, Elon Musk, which were opportunely reported by BitcoinDynamic. Currently, DOGE is the ninth largest cryptocurrency in market capitalization with almost $18 billion.