Despite the ongoing bearish trend in the broader crypto market, Dogecoin whales have taken advantage of the dip to accumulate more DOGE. Market analyst Ali Martinez revealed that whales have bought 310 million DOGE in the last 48 hours, amounting to over $73 million based on current prices.
Massive Purchases Signal Confidence in Price Recovery
According to Martinez, the accumulation came from major Dogecoin holders owning between 100 million and 1 billion DOGE. A shared chart shows these large investors began buying heavily on July 17 and have continued to accumulate since then. Their collective holdings now stand at 25.42 billion DOGE, worth billions of dollars.
This type of buying activity especially after a short-term price correction often indicates growing confidence in the asset and frequently precedes a rebound.
DOGE Price Action Reflects a Strategic Retest
Martinez explained that Dogecoin’s recent dip could be a retest of a 146-day ascending channel that the asset had broken out from. Before the dip, DOGE had surged by 84% within a month. It climbed from $0.1514 on June 23 to a high of $0.2786 before closing at $0.2745.
Related article: Dogecoin Sets Stage for Explosive 86% Rally After Retesting Key 146-Day Channel
In another analysis, Martinez said DOGE is retesting the neckline of a double-bottom on the 3-day chart. This W-shaped pattern started in February when DOGE fell below the $0.2577 support. It dropped to a low of $0.1298 in April. In May, DOGE tried to rally but couldn’t hold the gains. It then fell again to $0.1430 in June.
Despite its recent bullish momentum, DOGE has now fallen below the neckline level. At the time of writing, Dogecoin trades at $0.2334. However, Martinez suggests that this could still present a buying opportunity if DOGE successfully retests and reclaims the neckline at $0.2577.
Should this retest succeed, Dogecoin might target its December 2021 peak around $0.4846. The coming days will be critical in determining whether the meme coin resumes its bullish trend or continues to decline.
