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As the biggest memecoin, Dogecoin (DOGE) heads towards a crucial resistance level at $0.42, last week, whales pilled up $214.5 million worth of memecoins to sail it through a new all-time high in the last week.
#Dogecoin whales have bought more than 550 million $DOGE over the past week, worth around $214.5 million! pic.twitter.com/0eHqQGL3LO
— Ali (@ali_charts) November 21, 2024
The large-scale accumulation has drawn the attention of market analysts, signaling potential bullish momentum. The massive purchase comes at a crucial time as the cryptocurrency is making its variety towards a key resistance level, currently sitting at $0.42.
Dogecoin Approaches Critical Resistance Level
The resistance at $0.42 has proven to be a crucial psychological barrier for Dogecoin in recent weeks after a rally in Bitcoin. Many analysts believe that the pressure to push previous has increased after the entry of whales.
A successful breakout above $0.42 would mark a crucial technical breakthrough for Dogecoin to set the stage to cross an all-time high at $0.73. Technical indicators suggest that DOGE may have the necessary fuel to sustain a breakout and challenge its previous ATH with a target of $0.83.
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Apart from this, the ecosystem has witnessed a jump in on-chain activity. Dogecoin has reached a new milestone with its active addresses exceeding 1.33 million daily users.
The surge in the on-chain activity reflects the growing demand on the network, which is a positive sign for the cryptocurrency.
The Price Daily Active Addresses (DAA) divergence metric is signaling a strong buy. This indicator emphasizes the coordination between growing prices and participation.
The memecoin is currently maintaining a strong position above the $0.36 support level. To continue its upward momentum, DOGE needs to break through and establish $0.45 as a new support floor.