460 Million Dogecoin (DOGE) Accumulated: What's Behind It?

Whales Accumulate Dogecoin Amidst Market Dip

In a significant move, whales have seized the opportunity presented by the recent market downturn to amass a significant quantity of cryptocurrencies.

Among these, Dogecoin (DOGE) has emerged as a primary target for these large holders. According to crypto analyst Ali, "Whales bought 460 million Dogecoin (DOGE) in the recent price dip."

Market Dynamics

The market dip witnessed Bitcoin briefly falling below $99,000, prompting traders to secure profits ahead of a crucial Federal Open Market Committee meeting in the United States. Dogecoin, along with the broader market, succumbed to this downward pressure, reaching a low of $0.305 during yesterday's trading session.

Technical Analysis

The recent decline has pinned Dogecoin below its 50-day moving average of $0.3574, where it currently resides. Regaining strength will require a surge past this resistance, potentially leading to rallies towards $0.40 and then $0.43.

Conversely, a breach of the $0.305 support level could trigger further declines to $0.27 and then $0.23.

Market Outlook

Cryptocurrencies experienced a rebound on Tuesday morning, fueled by anticipation of the Federal Reserve's first meeting of the year, where interest rate decisions will be announced. Dogecoin has mirrored this upward trend, rising 6.47% in the past 24 hours to reach $0.334.

Investors await the upcoming Federal Open Market Committee meeting, which will conclude on Wednesday, with keen interest. However, expectations for a rate decrease remain minimal, with the Fed indicating at its December meeting that only two rate cuts are forecasted for 2025. According to the CME Group's FedWatch Tool, traders anticipate a 97% probability of stable interest rates.