Is it time to buy Dogecoin? Whale Buys 530 Million $DOGE

In the context of the cryptocurrency market experiencing strong price pressure, Dogecoin - a famous meme coin with a large community of fans - has become more attractive than ever due to a surprising event: during the days of sharp price decline, the “sharks” took advantage of the opportunity to buy the dip with a massive volume.

1. Market Background and Price Reduction Trends In the past few days, DOGE has experienced a significant decline, with a drop of more than 17% from its initial value. This trend is seen as part of the general market decline trend, as widespread concerns create conditions for investors to withdraw or switch to other safe assets. However, the market’s strong volatility has created attractive opportunities for those with a long-term vision and the ability to ‘buy when others are fearful.’
2. Whale Sharks “Buy the Dip” and Accumulate Big A famous crypto expert shared on X (previously known as Twitter) that, over the past three days as DOGE continuously decreased in price, large investors have started to take advantage of the buying opportunity, accumulating up to 530 million DOGE. This move is seen as a sign that the “whales” may be preparing for a strategic leap, as they buy in after a sharp price drop. This event has attracted the attention of the community even more because it shows that investors with long-term vision are not entirely in agreement with the ongoing selling trend.
3. Technical Analysis and Important Support Levels According to technical analysis, DOGE is currently trading at around $0.206, below the 200-day moving average - a technical indicator commonly used to assess the long-term market trend. Meanwhile, the charts show that the coin has established a significant support level around $0.175 over the past two consecutive trading sessions. Despite a slight recovery of (+1.75% in the past 24 hours), current signs still indicate that the downtrend may continue, with some experts predicting a potential further decline of about 15% in the future if selling pressure continues to increase.
4. The Decrease in Trading Volume and Open Interest In addition to the sharp price drop, DOGE also recorded a significant decrease in trading volume – only a slight increase in percentage of price but trading volume fell to 30% compared to the previous level. This suggests that investor participation is declining, possibly due to concerns about strong market volatility. Meanwhile, data from Coinglass shows that the futures open interest (OI) of DOGE has dropped from 5.25 billion USD to 1.79 billion USD since the presidential inauguration. This decline clearly reflects the uncertain sentiment of derivatives traders as they gradually withdraw from this currency.
5. Conclusion And Future Prospects In summary, the current context of Dogecoin shows a coin that is not only influenced by the overall market downturn but also faces a decrease in trading psychology. Accumulation actions from large investors may signal a “buy low” strategy, but technical indicators such as trading below the 200-day EMA and the support level near $0.175 indicate the risk of further price decline. If the market does not show positive reversal, forecasts suggest that DOGE could drop another approximately 15%, leading to a decrease in trading volume and trader interest. In the context of ongoing market instability, investors need to carefully consider the risks and opportunities, closely monitor technical indicators as well as market sentiment to make the right decisions.