Dogecoin Falls 10% – But Whales Just Bought 460M DOGE! – BitRss

Dogecoin has suffered a sharp decline, losing 10% over the past week and 2% in the last 24 hours. The popular meme coin reached a three-year high of $0.46 in December 2024. However, that bullish momentum has faded, and sellers have taken control.

Early morning trading on January 29 confirmed the growing bearish pressure. DOGE ($0.32) briefly tested the critical $0.31 support level before showing signs of weakness. The week-long downtrend has eroded confidence among traders, raising concerns about further losses. If Dogecoin fails to hold above this key level, analysts predict a deeper drop toward $0.26.

Indicators Confirm the Bearish Trend

Technical indicators paint a bleak picture for Dogecoin in the short term. The Moving Average Convergence Divergence (MACD) histogram continues to print deep red bars below zero. This pattern signals a strong bearish momentum that has persisted for days.

Dogecoin Price Analysis. Source|TradingView

Meanwhile, the Relative Strength Index (RSI) remains well below 50, confirming sustained downward pressure. A low RSI suggests sellers have the upper hand, making a quick recovery unlikely. If this trend continues, Dogecoin could experience another sharp selloff in the coming days.

$0.31 Support Holds the Key to DOGE’s Next Move

Dogecoin now hovers near a crucial support level. The $0.31 price mark serves as the last line of defense before a potential breakdown. If bulls fail to protect this level, DOGE may decline by another 16%, pushing the price toward $0.26.

On the other hand, a strong rebound from this level could spark renewed buying interest. For Dogecoin to regain bullish momentum, it must climb back above $0.40. This price level represents a key resistance zone that traders are closely watching.

Whale Accumulation Sparks Optimism

Despite the downturn, large investors appear to be taking advantage of the dip. Crypto analyst Ali Martinez reported that whales have accumulated over 460 million DOGE in the past few days. This buying activity suggests that some major players remain confident in Dogecoin’s long-term potential.

Historically, significant whale accumulation has often preceded strong price recoveries. When large holders increase their positions, it signals conviction that the current price level offers value. If this pattern repeats, Dogecoin may find support before staging a potential comeback.

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Can DOGE Rebound, or Will the Downtrend Continue?

The next 48 hours could determine Dogecoin’s near-term direction. If the price remains above $0.31, buyers may attempt a rally. A break above $0.40 would likely shift sentiment and bring fresh momentum into the market. However, if selling pressure persists, DOGE could see another leg down toward $0.26.

The current market environment remains uncertain, with bearish indicators outweighing bullish signals. Traders should closely monitor price movements and volume changes for early signs of a trend reversal.

Final Thoughts

Dogecoin has entered a critical phase after losing 10% in just seven days. The recent price action suggests that sellers remain in control. Technical indicators confirm the bearish outlook, with the MACD and RSI showing no signs of a reversal yet.

However, whale accumulation could provide a silver lining. Large investors have bought over 460 million DOGE, signaling confidence in the asset’s future. Whether this accumulation translates into a price recovery depends on DOGE’s ability to hold above $0.31 and reclaim $0.40.

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For now, the market awaits a decisive move. If bulls fail to regain control, Dogecoin could extend its losses toward $0.26. Traders should stay cautious and watch for key support and resistance levels in the coming days.

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