Dogecoin Surges 46% in Three Days, Whales Accumulate $140M
1min read Dogecoin, a popular cryptocurrency, experienced a significant price surge of 46% from Thursday, the 8th, to Saturday, the 10th of May. This impulsive move saw DOGE break out beyond a two-month range, reinforcing investor faith in the memecoin. The two-month range formation reached from $0.142 to $0.195, with the mid-range level at $0.169 serving as support for almost two weeks before the price breakout. This breakout surpassed the 78.6% Fibonacci retracement level, which was plotted using the November 2024 rally. The Fibonacci levels plotted for the recent breakout showed that $0.214 and $0.204 were key retracement levels that could be retested.
Analyst Ali Martinez noted that whales accumulated 600 million DOGE, worth nearly $140 million at press time. This heavy demand during the breakout meant that further gains were likely, although a short-term retracement was possible. The 11 hours preceding press time saw a 7% retracement from $0.25, with the memecoin trading at $0.233. The Money Flow Index has formed a bearish divergence over the past two days, and a price pullback followed. The MFI has reset to neutral levels, which means that DOGE might not fall any lower than $0.222. Therefore, in the coming days, the memecoin would likely see a bullish reaction from the $0.204-$0.222 region.
The liquidation heatmap of the past week highlighted the price’s steady, sustained move higher. During this move, brief pauses were spotted, which allowed short liquidations to build up above the price. Once hunted, they contributed to the upward momentum. At press time, both the $0.238 and $0.225 levels were notable magnetic zones for Dogecoin to move toward. The $0.225-$0.216 region was a liquidity cluster and lined up with the technical support levels outlined earlier.
Despite the optimism surrounding Dogecoin, it is essential for traders and investors to approach the market with caution. Cryptocurrencies are known for their volatility, and past performance is not indicative of future results. While the recent price surge is encouraging, it is crucial to conduct thorough research and consider all potential risks before making any investment decisions. Additionally, traders should be prepared for the possibility of price corrections and market fluctuations, as these are inherent characteristics of the cryptocurrency market.
