DOGE Price Nears $0.25 After Whale Accumulation – Is a Breakout or Crash Next?

Sean Williams
Dogecoin (DOGE)

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Dogecoin (DOGE) has staged an impressive comeback, surging 15.76% in a single day and pushing past the $0.20 mark. The rally erased weekly losses, fueled by whale activity as major holders accumulated 140 million DOGE. Trading volume skyrocketed 252% to $3.71 billion, signaling heightened market interest. However, DOGE now faces a significant resistance level at $0.25. Can bulls sustain the momentum, or will profit-taking stall the uptrend?

DOGE Faces a Critical Test at $0.25

The technical landscape for DOGE presents a mixed picture. While the daily chart indicates a retracement of over half the post-election rally, three consecutive lower lows raise concerns about potential weakness. However, key indicators suggest a possible reversal. The Relative Strength Index (RSI) hovers near oversold levels, hinting at a rebound. Additionally, a bullish Moving Average Convergence Divergence (MACD) crossover signals growing momentum, increasing the likelihood of another breakout attempt.

Rising global liquidity has provided a favorable backdrop for DOGE’s recent rally. Some analysts attribute the surge to a so-called “Trump pump,” correlating political shifts with increased speculative interest. Meanwhile, short sellers have faced heavy losses, with $10.10 million in liquidations reducing selling pressure. Open Interest in DOGE futures rose 10.57% to $2.03 billion, reflecting increased trader participation. However, weak spot demand remains a concern, potentially limiting sustained upward movement.

Will Bulls Maintain Control, or Is a Drop Ahead?

Despite the bullish momentum, DOGE has pulled back 7.66% from its recent high. A large red candlestick on the daily chart signals growing sell pressure, raising uncertainty about further gains. Futures traders have started reducing exposure, with Open Interest dropping by over 4%. This shift injects more liquidity into the market, increasing downside risks. If overleveraged positions trigger a long squeeze, a cascade of sell-offs could follow.

Also Read: NYSE Arca Files for Bitwise Dogecoin ETF – Will the SEC Approve the First DOGE ETF?

For now, the battle between bulls and bears continues. If DOGE maintains strong demand above $0.20, it could set the stage for another breakout attempt. However, a failure to hold key support levels might see bears regaining control. The next few days will be crucial in determining DOGE’s short-term trajectory.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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