The price of Dogecoin has shown positive signs in recent days, which suggests that we could see a reversal. In just 8 hours, the DOGE price gained 4% in market value. This trend must be associated with a buying pressure from the whales whose action influenced the market price.
For the past few weeks, cryptocurrencies have been experiencing a general decline in the market. Almost all of the altcoins plunged with Bitcoin, which fell back below the symbolic mark of $19,000. However, a flash arose in the market and Dogecoin took advantage of it to make gains. This caused the whales to consider a trend reversal.
DOGE has been flowing for a long time
Since August, the price of Dogecoin has experienced an unprecedented descent on the market. Over the second half of the month, the crypto lost 30% of its value. This did not improve in September as the price of DOGE declined another 12%, reaching an all-time low below $0.65. However, a slight reversal was observed which allowed it to record occasional gains.
The cryptocurrency took advantage of the short-term trend to register 4.5% gains. If these gains are smaller than those of other altcoins like Ripple, the Hodlers have decided to switch to a timing strategy.
Whales take action
In this period of decline, the price of DOGE is favorable for a purchase. The whales took this opportunity to buy DOGE in droves. According to the activity on the Dogecoin network in a week, it can be seen that the number of addresses with between 100 million and 1 billion DOGE increased by 5.13%. This results in the addition of six new whales possessing Dogecoin. Purchases recorded on the network are estimated at approximately 620 million DOGE over this period alone.
With such a large flow of transactions, one has to wonder if a reversal is in the offing. For it to be effective, the turnaround would have to rely on growing pressure to buy from a greater number of people. According to IntoTheBlock’s IOMAP, there are 86,000 addresses that have 42 billion DOGE. So the buying pressure fails to push the price past the resistance boundary at $0.069.
On the contrary, a study of the RSI shows that the buying pressure is weakening. The price is struggling to break through the ceiling of $0.069. A flight is still possible in the coming days.