Dogecoin price at risk of dropping below $0.15, but there’s a catch

The largest meme cryptocurrency, DOGE, experienced a 2.07% decline in its price during Tuesday’s trading session, dropping to $0.155. This downward movement was fueled by ongoing trade tensions between the United States and China, leading to a sense of uncertainty in the wider market. As a result, Dogecoin faces the risk of undergoing an extended correction below the $0.15 mark. However, there is a silver lining in the form of increased accumulation by crypto whales, presenting a potential opportunity for a reversal.

Over a period of three days, the price of Dogecoin fell from $0.169 to its current value of $0.155, representing an 8.87% decrease. This decline resulted in the formation of a new lower high on the daily chart, indicating a prevailing sentiment among traders to sell on any upward movement.

Despite the ongoing correction, on-chain data reveals that high-net-worth investors are actively accumulating DOGE, showcasing their unwavering confidence in the cryptocurrency’s future prospects. Recent reports indicate that whales have acquired more than 800 million Dogecoins within the past 48 hours, countering the prevailing negative sentiment surrounding the asset.

A detailed analysis of Dogecoin’s daily chart unveils a consistent consolidation within a falling channel pattern, coinciding with the recent price pullback. Currently, Dogecoin is trading at $0.5154 with a market capitalization of $23 billion. The price action suggests a bearish reversal from the resistance trend of the pattern, hinting at a prolonged correction with intensified selling pressure.

In the event that global trade tensions persist, Dogecoin’s price could plummet by another 45% to reach the support level at $0.085. On the contrary, a potential short-term recovery could reignite bullish momentum, enabling buyers to breach the overhead resistance and signaling a potential trend reversal. A breakout above this resistance level could propel the asset by 45% to challenge the next key resistance at $0.23.

The recent developments in Dogecoin’s price dynamics underscore the delicate balance between market forces and investor sentiment. While the cryptocurrency faces the threat of a continued correction below $0.15, the increased accumulation by whales offers a glimmer of hope for a potential reversal in the near future. The evolving landscape of the crypto market continues to be influenced by various external factors, highlighting the importance of closely monitoring on-chain data and key technical indicators to navigate these volatile times effectively.