Large Dogecoin holders have significantly increased their positions during the latest market correction. In the last 24 hours, wallets holding between 10 million and 1 billion DOGE accumulated 130 million coins, according to data shared by crypto analyst Ali Martinez. This accumulation occurred as Dogecoin’s price slipped below $0.23, dropping 6% in a single day and over 15% within the past week.
Whale Accumulation During Price Decline
Despite the falling price, data shows a steady rise in holdings from major wallets. This trend typically indicates whales are buying during corrections, positioning themselves for a potential price recovery. Martinez highlighted that this pattern often precedes upward moves as large investors take advantage of discounted prices.
Trader Tardigrade noted that Dogecoin might be forming a bullish double bottom pattern on the 4-hour chart. This setup consists of two consecutive lows near the same level, separated by a minor rebound. The first low appeared near $0.2160 on July 25, while the second dip formed on July 29 slightly above the previous low. Both lows share a resistance level around $0.2435.
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If Dogecoin breaks above this resistance, analysts predict a potential rally toward $0.27. Conversely, a drop below $0.22 would invalidate the pattern, signaling further downside risks.
Oversold Signal on 1-Hour Chart
In another analysis, Trader Tardigrade revealed a 10% price decline over 17 hours on the 1-hour chart. During this decline, the Relative Strength Index (RSI) plunged from overbought levels to below 30, entering oversold territory. Such low RSI readings often suggest selling pressure is weakening, potentially leading to a price pause or reversal. However, confirmation of this shift remains pending.
Source: Glassnode
Supporting this accumulation trend, Glassnode data shows consistent growth in Dogecoin addresses. The number of active addresses reached 109.14 million, up from 108.5 million a month ago. This steady increase signals continued user interest and network activity despite price volatility.
Related article: Every Time Dogecoin Forms This Pattern, Price Takes Off: Analyst Predicts Potential Rally
Overall, whale buying, technical patterns, and network growth suggest that while Dogecoin faces short-term pressure, long-term sentiment remains strong.
