Are Dogecoin Whales Setting a Trap Above $0.4? Here’s What to Expect from DOGE Price Rally

Dogecoin Price: Whales Drive Accumulation, Resistance Levels in Sight

Dogecoin's trading range has remained relatively stable between $0.31 and $0.33 over the past week, reflecting a decline in volatility. This has resulted in traders shifting their focus away from the token.

Despite this, whales have shown significant interest in Dogecoin, accumulating over 90 million DOGE in recent days. This accumulation suggests that whales are preparing for a potential breakout in the token's price. However, whales may not hold the token for extended periods, which could lead to a pullback in the near future.

According to data from Coinglass, there is a large cluster of liquidation leverage at $0.42 and $0.49.

This indicates that over $70 billion has been leveraged between $0.41 and $0.43, creating a strong resistance level. Whales may be targeting these high-liquidation areas to execute short trades.

If the price can break and sustain above these levels, it could face further resistance at $0.485 and $0.5, where over $50 billion has been accumulated.

Outlook: Will Dogecoin Reach $0.5?

Historical price charts suggest that Dogecoin is repeating its previous trend. However, technical indicators show a mixed picture. The MACD indicates a decrease in buying pressure, while the accumulation of the token has slowed with a slight increase in distribution levels.

This suggests a potential drop in the coming days, possibly below $0.3, which could trigger liquidations and push the price towards higher targets.

If Dogecoin can break out above its resistance levels and repeat its historical pattern, it could mark the start of a bullish trend in the broader crypto market.