Dogecoin (DOGE), has seen a surge in whale activity, with large entities buying up over 800 million DOGE tokens in just 24 hours. This accumulation comes amid recent struggles for Dogecoin’s price, which has failed to maintain momentum after reaching a local high of $0.16. In the last 48 hours, DOGE’s price has dropped from $0.16 to a local low of $0.157, and as of the latest data, it is trading at $0.159, showing a 2.71% decline over the past 24 hours.

Despite the price struggles, the surge in whale buying could indicate confidence in the cryptocurrency coin potential for future growth. Let’s take a closer look at what this increased whale activity means and what could happen next for Dogecoin.

Whale Activity Signals Confidence

The sharp increase in whale purchases could signal that large investors see current prices as an opportunity to buy before Dogecoin’s value rises again. According to Ali Martinez’s analysis on Santiment, Dogecoin whales have aggressively accumulated more than 800 million DOGE tokens in the past day. Whale accumulation is typically seen as a bullish indicator because these large players are betting on the coin’s future growth and believe it’s an attractive price point.

Historically, when whales begin to accumulate, it often encourages other market participants to follow suit. This could lead to a broader surge in buying activity, as indicated by Dogecoin’s spot netflows. Over the last 10 days, the spot netflows have been negative, signaling a rise in buying pressure. Additionally, the decline in Futures sell volume from $3.43 billion to $238.4 million reflects that fewer investors are aggressively selling off DOGE, suggesting reduced selling pressure and possibly hinting at an impending price rise.

The Bearish Crossover and Downward Momentum

Despite the bullish signals from whale activity, Dogecoin’s price action over the last 24 hours still shows signs of downward momentum. A bearish crossover in Dogecoin’s Stochastic RSI (Relative Strength Index) with the Signal line suggests that the coin is under significant selling pressure. The Stochastic RSI recently hit a high of 86.9, indicating that DOGE may continue experiencing a downtrend in the short term.

This bearish signal is a cause for concern for those hoping for an immediate recovery in Dogecoin’s price. If the downtrend persists, it’s possible that DOGE could fall further, potentially reaching a price of $0.156 before attempting another upward move.

What’s Next for Dogecoin?

Despite the bearish indicators, the return of buyers, especially from whales, could lead to a reversal of the current downtrend. If buying pressure continues to increase, Dogecoin could stage a recovery and push higher toward $0.170. However, it’s important to note that the downward momentum may not be over yet, and Dogecoin could face further declines before any potential upward movement.

In summary, Dogecoin is currently caught between a tug-of-war. On one hand, whales are showing strong confidence by aggressively buying DOGE, suggesting a potential for future growth. On the other hand, the recent bearish crossover and continued downward pressure could lead to more price declines in the short term. The key factor will be whether the whale buying activity can counteract the downward momentum and drive Dogecoin toward higher price levels in the coming days.