While some panicked over the recent correction, Dogecoin whales are leveraging the dip to acquire the prominent memecoin at a lower price.
Aside from a broader bearish market trend, a recent analysis suggested that the Dogecoin dip is simply a retest of a 146-day ascending channel from which it recently broke out. Dogecoin whales appear to share this sentiment, evident in the massive accumulation.
Dogecoin Whales Swallow Millions in Two Days
Market expert Ali Martinez highlighted this accumulation disposition in the past two days, following DOGE’s ongoing dip. In a tweet, he shared that large Dogecoin whales have swallowed up 310 million DOGE, worth over $73 million at the current market price.
Notably, this buying spree came from one of the largest Dogecoin whale categories, specifically those holding between 100 million and 1 billion DOGE. An accompanying chart highlights a spike in acquisitions from July 17, followed by a consistent accumulation over the past 48 hours.
These whales now hold 25.42 billion DOGE worth billions of dollars following the recent purchases. Notably, this type of accumulation, especially after a brief profit-taking dip, sparks positive sentiment around a project and usually precedes a price rebound.
Dogecoin Gearing Up for the Next Rally
For context, Dogecoin rallied 84% over the past four weeks before its recent dip. It exhibited bullish momentum, rising from $0.1514 on June 23 to a high of $0.2786 in the previous week before closing at $0.2745.
Martinez identified in a parallel tweet that this correction is Dogecoin retesting the neckline of a double-bottom structure in the 3-day timeframe. The W-shaped pattern started to form when DOGE fell below a crucial support level at $0.2577 in February. The bearish trend persisted until a low of $0.1298 in April.
Meanwhile, Dogecoin retested the support—now a resistance—again with its May rally to $0.2599 but failed to hold. It fell again to June’s low of $0.1430 before resuming the rally to last week’s high. Notably, this time, it finally broke above the resistance with its close at $0.2745.
Now, Martinez noted that Dogecoin was simply retesting the neckline at $0.2577 and could be a good buy opportunity for the next round of bullish uptick. His chart shows that DOGE could target the levels around its December peak price of $0.4846 upon a successful retest.
However, DOGE has broken below the neckline at the time of writing, trading at $0.2334. Nonetheless, how the meme coin will react in the coming days, especially as the week nears its conclusion, will determine its next price trajectory.