Dogecoin Holds Strong: Signs of Recovery as Whales Accumulate
Dogecoin stabilizes above a key support trendline, signaling potential recovery as major holders ramp up their accumulation.
Dogecoin has been showing resilience by maintaining its position above a key support trendline, consolidating within a narrow range in the past 24 hours. This stability suggests a potential turning point, as highlighted by crypto analyst Trader Tardigrade. Technical analysis points to the formation of a selling climax bottom, a critical pattern that could signal the end of a correction and the start of recovery.
The support trendline has been a pivotal level for Dogecoin since mid-December 2024, following a significant dip earlier in the month. After briefly dropping below a crucial threshold, the price rebounded strongly, forming what is referred to as a selling climax. According to Trader Tardigrade, the process of completing this extended bottom formation is still underway, signaling a broader potential for upward movement once finalized.
Recently, Dogecoin retested this vital support level after a short-term rally. This retest, known as a “secondary test,” is a crucial step to validate the selling climax bottom. Successfully holding above this trendline increases the likelihood of transitioning from the correction phase into a recovery, potentially setting the stage for a stronger price action in the near future.
Investors are closely watching for signs of strength, and activity on the blockchain reveals a notable trend. Whale addresses, large holders of Dogecoin, have been accumulating significant amounts of the token in recent days. Over the last 48 hours, these whales added millions of tokens to their holdings, pushing their collective total to the highest level seen in over a month. This increased activity among major players suggests growing confidence in an upcoming price surge.
Trader Tardigrade predicts that Dogecoin is on the verge of a strong rebound, which could propel its price significantly higher in the coming weeks. This optimistic outlook aligns with the increased accumulation by whales, signaling that the market may be positioning itself for a notable upward movement. As Dogecoin continues to consolidate above its key support level, its potential for recovery remains strong.
