Dogecoin’s [DOGE] whale activity has remained stagnant, maintaining an average of 24.35 billion DOGE. This lack of significant buying or selling pressure among large holders over the past week suggests that major players are adopting a wait-and-see approach.
During this period, DOGE’s price exhibited only slight fluctuations, reaching a low of approximately $0.255 and peaking around $0.288. The minimal volatility reflects uncertainty in the market, leaving traders to speculate on the potential next move.
The absence of whale activity presents multiple scenarios for DOGE’s future. One possibility is that this inactivity is merely “the calm before the storm,” with whales silently accumulating before triggering a significant move. If buying pressure increases, DOGE’s price could experience a substantial surge.
On the other hand, stagnant whale activity could also signal waning interest among large holders. If whales maintain their positions without significant accumulation, or if they begin exiting the market gradually, DOGE’s price could face a downward trajectory. A lack of aggressive movements may set the stage for sudden price swings driven by external market factors or a collective shift among major holders towards buying or selling.
Examining DOGE’s price behavior on a 4-hour chart reveals a tightening squeeze within a symmetrical triangle pattern. This formation often precedes a breakout, suggesting that a decisive price movement is imminent. Key resistance and support levels are converging, signaling a rise in volatility as DOGE approaches the triangle’s apex.
The Relative Strength Index (RSI) also points to increasing bullish momentum, maintaining an uptrend within the neutral zone. Typically, if the RSI continues its upward movement and stays above the 50 level, it indicates growing buying pressure, which could result in a breakout above the triangle pattern.
Moreover, the Price Momentum Oscillator (PMO) reflects strengthening bullish sentiment, displaying a positive slope that suggests Dogecoin’s price movements are accelerating. The combination of this momentum and the tightening price pattern often precedes an upward price movement.
If bullish indicators materialize, DOGE could break above its symmetrical triangle, potentially testing higher resistance levels at $0.50, $0.75, and even $1. However, if momentum falters and the RSI or PMO trends downward, DOGE risks breaking below the triangle, leading to a possible sell-off.
As DOGE consolidates, market participants are closely monitoring signals from both whales and technical indicators. Whether the next move is an explosive rally or a downward correction, Dogecoin’s current phase of stagnation is unlikely to last for long.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist