Dogecoin (DOGE) recently set a new 30-day record as 9.4 billion DOGE changed hands within just 24 hours. This surge in whale activity has drawn significant attention, suggesting that large holders are becoming more involved in the market. Whale transactions, typically linked to institutional investors or entities with market power, often indicate growing confidence in the asset.

Whale Movements Fuel Bullish Sentiment

The timing of this spike in transactions is crucial. DOGE recently broke through key resistance levels, signaling a potential bullish reversal. The price overcame the $0.12 resistance level, marking the best result for Dogecoin since July. Large-scale whale movements often signal future price increases, and this latest activity has bolstered confidence in DOGE’s continued upward trajectory.

Dogecoin Exceeds Key Technical Milestones

Dogecoin’s technical performance shows significant strength. The price has now surpassed both the 200 and 100 Exponential Moving Averages (EMAs). Momentum strongly favors the bulls at this point, with the cryptocurrency positioned for further gains. High trading volumes suggest that buyers are confident in the market, even though the Relative Strength Index (RSI) shows that DOGE is nearing overbought territory.

Next Resistance Level at $0.14

With the price trading above key EMAs, analysts predict that Dogecoin could soon target the next major resistance level at $0.14. Whale purchases could further stabilize the price, making a significant retracement less likely in the short term. If whale activity continues at such high levels, DOGE may consolidate gains and build a more sustained upward trend.

Potential Risks of a Price Retracement

Despite the bullish indicators, there remains a possibility that the price could drop if large sell-offs occur. If Dogecoin fails to hold above $0.12, it may retrace to earlier support levels around $0.11 or $0.10. However, given the current momentum, a significant retracement appears less likely in the near term.

In conclusion, the combination of whale activity and strong technical performance suggests that Dogecoin may continue its upward trend. However, traders should remain cautious of potential sell-offs that could trigger a pullback.

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