Dogecoin Price: Whale Activity Hinting At Potential Bear Trap?

A rise and daily close beyond $0.17 pointed toward an invalidation of bearish tendencies while setting up a possible flip.

DOGE could reach $0.21 and potentially extend further to $0.24 if it broke the trendline.

If DOGE sees resistance at $0.15500 and then continues to decrease it could strengthen bearish momentum resulting in further declines towards $0.13000 or below.

The mid-term trendline served as a critical point for DOGE as its reaction would establish the next direction.

Will the Wedge Breakout Persist？

Further analysis showed the pattern breakout as DOGE left clear the falling wedge on the 4-hour chart indicating market bullishness.

The price increased from $0.15100 after the breakout pattern confirming DOGEs uptrend continuation until reaching $0.15800.

This price movements produced lower highs and lower lows then pushed through its boundaries typically indicating bullish signals.

The RSI passed above the essential 50-level mark. A downtrend prevailed for DOGE during this period when RSI remained under 50 points until it reached $0.15.

Dogecoin 4-hour chart | Source: X

If the RSI stayed above 50, it could confirm momentum shift in a positive direction thus strengthening the bullish trend.

The uptrend could extend as far as $0.16200 and even break above this point as long as DOGE maintained above $0.1560.

The price would most probably fall back towards $0.1510 from $0.1560 if DOGE failed to maintain a position above this point.

This uptrend would be invalidated if price went below this point while also ending the breakout pattern and potentially reigniting the former bearish trend.

The patterns of the next candles will dictate if this break out can sustain.

Why are Whales Offloading DOGE？

Despite the positive signs, DOGE whales with saw substantial distribution of their coins. The total balance of whale-tier addresses reached 24.65B DOGE.

The offloading of whales hinted at a potential bear trap as these savvy traders were exiting despite DOGE prices showing optimism.

In the past week, the combined wallets holding 23.81B DOGE saw about 840M DOGE decrease resulting in more than 570M token loss.

DOGE whale activity | Source: Santiment

The consistent decline in balances from 10M–100M DOGE wallets occured while prices rise which might show that biggest investors were both cashing out and growing less committed.

Dogecoin market saw these exit patterns before short-term price corrections began especially as public interest in the token decreased.

Analysis suggested the whale selling activities could fail to upset the market because demand seemed strong and unperturbed.

The current upward momentum for DOGE as of press time could extend as long as its price stayed above the aforementioned $0.15 zone.

Alternatively, Dogecoin price could enter a deeper correction if sellers resume their activity if it fell below $0.15.

Whales could either start buying again or continue their existing distribution pattern during the following days.