Dogecoin whales have acquired a massive 139 million DOGE tokens, signaling a shift in market sentiment. These large-scale purchases suggest whales are capitalizing on perceived undervaluation, with many anticipating future price movements. Such activity highlights their potential influence on Dogecoin’s price, especially amid a volatile crypto market.

It can also be related to the recovery in the overall market, with Bitcoin and Ethereum looking like they are getting back on track. It looks like the whale transactions can also be linked to the hopes that investors have for the growth of Dogecoin, following the community engagement and past endorsement that it had gained.

Also Read: Dogecoin (DOGE) Nears Breakout As Analysts Highlight The $0.280 Target

DOGE Technical Outlook Points to a Cautious Outlook

Technically speaking, a downtrend movement appears on the price from October to late December. The price remains below the declining 20, 50, 100, and 200 EMAs. The banding pattern shows a widening effect on every selling movement, confirming that there is a structure of lower highs and lower lows on most trading sessions.

Source: TradingView

Early January saw the creation of a relief rally from the bottom Bollinger Band around 0.11-0.12. The price has regained the 20-day EMA but not the 50-day EMA. The current action reveals rejections around 0.14-0.15. Support is found at 0.13 and then 0.11, with resistances seen around 0.16 and 0.18. Overall, the bearish technical bias is maintained.

Falling Wedge Breakout Could Push The DOGE Above $0.21

However, the crypto analyst, Crypto Pulse, highlighted that DOGE has breached the upper edge of its falling wedge pattern, indicating a bullish pattern targeting $0.20-$0.21. In addition to the bullish indication, it should be noted that the golden cross in its RSI and MACD momentum confirms the uptrend. The golden crossover indicates that it is time to buy or go long.

Source: X

The breakout is further supported by strong volumes, indicating that the markets are interested in it. With the RSI golden cross and the MACD in the positive zone, DOGE seems to be moving upward with strong support. The next level of support for the breakout will be at the resistance of $0.20 to $0.21. If the breakout holds, a sustained rally is possible, though vigilance is needed in this volatile market.

Also Read: Dogecoin Whale Activity Falls 86% in a Week as DOGE Trades Near $0.14