Whales Accumulate Over 530M DOGE During Dip, Price Support Strengthens

Dogecoin (DOGE) has seen a significant increase in accumulation by whales, with over 530 million DOGE bought during the recent dip. This trend has been ongoing for nearly a month, with the total DOGE held by whales rising from 23.55 billion to around 24.46 billion. The most recent net accumulation occurred over the past three days, coinciding with a drop in DOGE's price, particularly after mid-February.

Notably, the lowest price point recorded was around $0.208 by late February, which coincided with the highest accumulation level. This suggests that whales have likely been capitalizing on lower prices to expand their holdings. If whales continue to buy at lower prices, it could establish a stronger price support. Conversely, if these large holders start to sell, it could lead to a decline in price.

Dogecoin recently dipped into a significant order block zone, one which has historically served as a critical area of buying activity due to a high concentration of limit orders. The zone between $0.20 to $0.23 has been historically placed with large buy orders, anticipating potential price rebounds. At the time of writing, DOGE seemed to be hovering just above this zone at around $0.21, suggesting that the limit orders within this range are beginning to be executed. As these orders get filled, the buying pressure may drive the price north.

If Dogecoin successfully consolidates above this zone and absorbs the sell pressure, it could signal a bullish trend reversal. Potential targets might initially be around $0.30, while extending upwards towards its previous highs at around $0.50. Conversely, failure to maintain support within this order block could lead to a price drop, potentially revisiting lower support levels below $0.11 to $0.09, where the next substantial order block exists.

Finally, DOGE's bullish divergence on the RSI hinted at potential upward momentum following a period of being oversold. The RSI fell below the critical threshold of 30, and while DOGE continued to form lower lows, the RSI began to diverge. This divergence is a sign that the selling pressure has been weakening lately, often preceding a reversal to the upside. However, should the expected bullish momentum fail to materialize, DOGE could continue to test lower supports on