Dogecoin’s 32% Crash Can Only be Recovered by Whales

From beincrypto by Aaryamann Shrivastava

Dogecoin has struggled to recover from its recent losses, with demand noticeably declining over the past few days. As the year draws to a close, many investors are choosing to sit out the  volatility  associated with this transitional period. 

This could leave DOGE vulnerable to further price declines unless significant market activity resumes.  

Dogecoin Whales Are The Hope

Dogecoin whales play a critical role in preventing the altcoin from further decline. Transactions exceeding $100,000 have surged, reaching 9,410—the highest level since November 2021. This resurgence in high-value transactions indicates strong whale activity, which has historically been pivotal in stabilizing Dogecoin during volatile periods.  

If whales maintain their current activity levels, they could provide the liquidity and market support necessary to shield DOGE from further dips. However, this support must be sustained as broader investor participation remains subdued. For Dogecoin to regain its footing, a consistent influx of high-value transactions is essential. 

  Dogecoin Large Transactions. Source: IntoTheBlock

Dogecoin’s Chaikin Money Flow (CMF) indicator is hovering around the neutral line, signaling minimal inflows into the market. This suggests that investors remain cautious, potentially due to uncertainty in broader market conditions or waning interest in DOGE.  

The lack of significant inflows reflects the hesitancy among market participants. Without a noticeable uptick in buying pressure,  Dogecoin’s macro momentum  could weaken further, leaving it reliant on whale activity and external catalysts to sustain its price levels.  

  Dogecoin CMF. Source: TradingView

DOGE Price Prediction: Securing Support

Dogecoin is currently priced at $0.32, a level it is attempting to establish as a support floor. Securing this level is crucial for the meme coin to recover from its recent 32% crash from $0.46. Holding this support could signal a potential turnaround in investor sentiment.  

The next target for DOGE is to flip $0.36 into support and continue its uptrend toward $0.40. Achieving this milestone would restore confidence in the cryptocurrency, paving the way for sustained growth and increased market activity. 

  Dogecoin Price Analysis. Source: TradingView

However, failing to secure $0.32 as a support level could lead to a drop toward $0.28. Such a decline would invalidate the bullish outlook, leaving  Dogecoin vulnerable to further losses. Monitoring these key levels will be critical for traders and investors in the coming days.