Dogecoin Price Analysis: Whales End 4-Day Losing Streak with $160M Inflows

Dogecoin Price Analysis

Dogecoin price soared as high as $0.11 on Friday, October 4. On-chain data analysis links the impressive 9% rebound within the last 24 hours to whale investors who spent the past week buying the dip amid the global financial markets shakeup.

DOGE Price Rebounds 9% After Testing 14-Day Low

After a highly volatile week, the global cryptocurrency markets received a major boost on Friday, October 4, as deflationary figures reported in the latest US Non-Farm Payrolls (NFP) data aligned with recent statements by the US Federal Reserve chair, hinting at potential rate cuts in the near future.

Amid this broader market recovery, Dogecoin emerged as one of the top gainers among the top 20 ranked cryptocurrencies, breaking a 4-day losing streak.

The chart attached shows Dogecoin’s price performance throughout the week. As the price sank to a 14-day low of $0.10 on October 3, market sentiment remained bearish. However, as the US Bureau of Labor Statistics released the latest NFP data, DOGE price surged to $0.11, marking a 9% rebound within the daily timeframe.

This notable price movement, which saw Dogecoin racing to double-digit gains within 24 hours of the broader market reversal, suggests that internal bullish catalysts were also at play.

Dogecoin Whales Triggered Early Rebound with $160M Inflows

Before the 9% rebound on Friday, Dogecoin price had experienced a sharp decline this week, falling by 23.30% between September 29 and October 3. This occurred as memecoin markets faced large-scale sell-offs, with rising geopolitical tensions in the Middle East adding further downward pressure.

While the global crypto markets suffered over $500 million in liquidations, on-chain data trails show that whale investors were quietly accumulating DOGE during this dip.

IntoTheBlock’s Large Transaction Netflow, which tracks the daily net changes in balances of wallets controlling at least 0.1% of DOGE’s circulating supply, indicated persistent whale accumulation during the downturn.

Notably, the netflow chart reveals that whales added 37.43 million DOGE on September 29, ramping up buying pressure in the following days. By October 3, as the market continued its decline, whales had accumulated an additional 1.55 billion DOGE.

Based on the 5-day Simple Moving Average (SMA) price of $0.11, these whale investors effectively spent $160 million purchasing DOGE during the market dip.

Whale investors are known to have a longer-term investment horizon. Hence, such large whale accumulation within such a short timeframe can reduce short-term market supply. Hence, the $160 million whale inflows in the last 4 days may have played a pivotal role in Dogecoin’s rapid 9% price breakout on October 4.

Dogecoin Price Forecast: $0.11 Breakdown Could Trigger More Gains

Now that Dogecoin has broken out above the key $0.11 resistance level, many analysts are closely watching for further gains in the short term. The current price action suggests a potential bullish reversal, supported by the presence of technical indicators pointing to continued upward momentum.

Using the attached chart for technical analysis, several indicators provide a clear signal for Dogecoin’s future price movement. The Moving Average Convergence Divergence (MACD), a momentum oscillator that helps identify shifts in trend direction, shows a positive divergence.

The MACD line (blue) is trending above the signal line (orange), confirming that bullish momentum is building. A continued upward trajectory in the MACD could signal further upside potential for DOGE in the coming days.

Another key indicator is the 50-day Moving Average (MA), which has acted as a dynamic support level in recent days. Dogecoin’s price currently sits above this moving average, reinforcing the bullish sentiment. Traders typically view an asset trading above the 50-day MA as being in an uptrend.

In terms of short-term support and resistance levels, DOGE price is facing two significant resistance zones at $0.115 and $0.125. A breakout above $0.115 could trigger another rally, pushing the price toward $0.125, while a failure to break above this level could lead to consolidation or a retracement.

On the downside, two key support levels to watch are $0.10 and $0.09. These levels have proven to be strong support zones in the past, and a failure to hold above $0.10 could signal further bearish pressure. However, given the recent whale accumulation and positive market sentiment, these support levels are expected to hold in the near term.

Dogecoin’s recent price surge following the whale accumulation and broader market recovery suggests a bullish outlook in the near term. With the MACD signaling increasing momentum and Dogecoin trading above its key moving averages, traders should be on alert for further gains.

However, the $0.115 resistance level remains a critical barrier to watch. Should DOGE break above this level, it could open the door for a swift rally toward $0.125.