In the midst of an impressive one-week surge in the value of Dogecoin (DOGE), a well-known expert has shared crucial support and resistance levels to monitor.
Dogecoin, the largest memecoin by market capitalization, remains one of the top trending cryptocurrencies on CoinMarketCap. While Bitcoin and other major altcoins are experiencing declines, the dog-themed digital currency has achieved double-digit gains over the past seven days.
Crypto Expert Highlights Support and Resistance Levels
With the growing interest from investors in DOGE, Ali Martinez has taken to Twitter to reveal some critical supports and resistances that traders should closely observe. In addition, the crypto market watcher has emphasized the increasing accumulation of Dogecoin by numerous whale addresses.
In a recent report, it is evident that Martinez has been meticulously monitoring the Dogecoin market. This time, the top crypto strategist recommends that traders pay attention to the $0.070 – $0.076 range on the DOGE/USDT chart. This particular range is being dubbed the most crucial support zone for Dogecoin.
On the other hand, Martinez points out that bears are currently targeting profit-taking at the $0.083 and $0.088 price levels for DOGE, and these levels can be clearly observed on lower timeframe charts.
However, when examining the DOGE/USDT one-day chart, it becomes apparent that DOGE has established strong support at $0.06253 and $0.0530. The chart also reveals various resistance zones, with near-term resistances observed at the $0.083 and $0.095 price levels. The last instance in which Dogecoin tested the $0.095 level was back in April.
— Ali (@ali_charts) July 26, 2023
Bullish Momentum and Whale Accumulation
Given the prevailing bullish momentum for Dogecoin, along with whale activities, Martinez believes that the meme coin has the potential to surpass these resistance levels. He highlights the formation of a multi-year descending triangle as a contributing factor.
As previously mentioned, the crypto strategist has drawn attention to the repetition of a historical pattern. The last time DOGE broke out of this pattern, it experienced a staggering rally of 23,200% over the subsequent months.
Significantly, whales continue to accumulate the token at crucial support levels. Martinez reports that between the price ranges of $0.06253 and $0.0530, 452,000 wallets have acquired 51.4 billion DOGE. Additionally, data reveals that 172.68K addresses obtained approximately 21.4 billion Dogecoins at an average price of $0.0742. Moreover, 179K addresses accumulated 30 billion DOGE at an average price of $0.0719.
According to reports, these whale acquisitions may have played a role in the recent over 25% surge in Dogecoin’s price over the past two weeks, resulting in a 2.4% return on investment for active one-year DOGE traders.