Dogecoin’s price has dipped to $0.0802, falling below the analyst-supported level of $0.081 despite reported whale purchases of 600 million DOGE since October 12th. Crypto analyst Ali Martinez highlighted several potential recovery factors in his analysis.
Martinez noted a daily technical buy signal near the $0.081 price level, which has historically marked turning points for Dogecoin. He also pointed out that large holders had accumulated around 600 million DOGE during this period.
Analyst Identifies Recovery Signals
The analyst’s bullish thesis hinges on the convergence of a daily buy signal, a significant cost-basis zone at $0.081, and whale accumulation. Martinez emphasized that these factors could potentially fuel a recovery in Dogecoin's price.
Earlier signs of selling exhaustion were observed during the week, with DOGE among four altcoins displaying technical buy signals on October 15th when trading near $0.07977. Martinez’s conditional recovery levels were set at $0.087 and $0.094.
Using a Glassnode UTXO Realized Price Distribution chart, Martinez noted that roughly 36 billion DOGE had previously traded around the $0.081 price level. Santiment data showed holdings rising from approximately 55.6 billion to 56.2 billion between October 12th and 16th.
The weekly chart placed DOGE below its simple moving averages, with the 20-week average standing at $0.08163. Weekly Chaikin Money Flow read minus 0.06, indicating a potential bearish sentiment in the market. However, Martinez’s longer-range scenario remains conditional on a recovery to $0.081.
Whale Activity and Technical Indicators
The recent decline follows a different September setup where Dogecoin returned to $0.10 after a 25% weekly rally by Sep. 23rd. The subsequent retreat of nearly 19.8% brings the current price closer to analyst-supported levels.
While whale activity and technical indicators suggest potential recovery, Dogecoin’s price remains below key support levels, leaving its future trajectory uncertain in the short term. Analysts will continue to monitor these factors closely for any signs of a rebound.