Despite Dogecoin (DOGE) Decline, Whales Accumulate 240 Million... Will it Reach $0.1774?

▲ Dogecoin (DOGE) ©

Dogecoin (DOGE) has been showing weakness since the vote on the U.S. cryptocurrency market structure bill, the Clarity Act, but large whales have instead bought 240 million units in a week. Cryptocurrency analyst Ali Martinez suggested that if the $0.0813 support level is maintained, it could rise to $0.1552 and potentially up to $0.1774.

According to the cryptocurrency specialized media Finbold on September 16 (local time), Dogecoin fell by about 3.6% in the last 24 hours since the Clarity Act vote. However, large whale addresses holding at least 100 million DOGE have accumulated over 240 million additional units in the past week. Martinez presented the possibility of a future price rebound based on this whale demand and on-chain support levels.

The key price level is $0.0813. The UTXO Realized Price Distribution (URPD) is an on-chain indicator that shows the volume of cryptocurrency at each price range where it last moved, helping investors identify major buying price levels. Martinez analyzed that a strong on-chain support has formed at this price level, as approximately 35 billion Dogecoins were previously traded around $0.0813. He suggested that an upward structure remains valid as long as this support level is maintained, setting the next target prices at $0.1552 and $0.1774.

Whale accumulation was also cited as a reason supporting the bullish outlook. According to Santiment, large Dogecoin whales acquired an additional 240 million units between September 9 and 14. As a result, their holdings increased to approximately 19 billion units, which accounts for about 12.18% of the total Dogecoin supply.

While the price is undergoing a short-term correction, it has risen by 14.53% over the past month. At the time of writing, Dogecoin was trading at $0.08017, and its market capitalization decreased by 4.66% to $13.56 billion in the last 24 hours. Conversely, trading volume increased by 47% to $998.8 million over the same period, indicating a significant increase in trading activity during the price decline.

Martinez assessed that Dogecoin's price correction, which has continued since August 22, could be an opportunity for long-term investors. However, the premise of his bullish scenario is the maintenance of the $0.0813 support level. The current price of $0.08017 is slightly below this level, making whether it can recover and hold this price point in the future a key observation point.

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