Dogecoin (DOGE) is trading near a key support zone after weeks of sustained bearish pressure, with one crypto analyst pointing to signs that selling momentum could also be fading after an prolonged decline. DOGE has fallen sharply since October, bringing the worth back to levels last tested at the start of the 12 months. At the time of writing, the token was changing hands at around $0.13 and remained near recent lows after sellers repeatedly attempted to push it lower.
DOGE analyst identifies liquidity run-through near support levels. Whale accumulation appears to be near support levels
DOGE/USD every day price chart. Source: CoinMarketCap
DOGE Analyst Identifies Liquidity Sweep Near Support
Crypto analyst BitGuru said that Dogecoin appears to have accomplished a liquidity sweep near support, a move that typically eliminates sell-side liquidity after an prolonged downtrend. The analyst said recent price motion shows compression near the lows, a structure often related to a slowdown in bearish momentum.
Source: X
The support zone shown within the evaluation is consistent with previous consolidation areas from earlier this 12 months, adding additional technical relevance to the extent. BitGuru warned that stabilization alone doesn’t confirm a reversal and is determined by the worth continuing to remain above the present range.
Despite signs of easing selling pressure, Dogecoin continues to trade below several former support zones which have became resistance zones. The broader price structure still shows a series of lower highs formed over the past few months, keeping the short-term trend under pressure.
According to the analyst, any recovery attempt would require sustained local buying and continuation above these resistance levels, moderately than short speculative moves.
Whale accumulation appears to be near support levels
Separate market data showed increased activity by large farmers over the identical period. An X post from the CEO Investments account reported that wallets classified as whales have amassed greater than 300 million DOGE within the last 24 hours because the DOGE price moved near the support area identified within the evaluation.
Source: X
Although the figure represents a small portion of Dogecoin's circulating supply, the activity stands out in comparison with recent wallet behavior and coincided with the test of support. It isn’t clear from the information whether the buildup reflects long-term positioning or short-term trading.
BitGuru described Dogecoin as being at a call point. Holding above the present support area could enable a short-term easing move, while a decisive break below would weaken stabilization expectations and keep downside risks in focus.
Currently, evaluation believes DOGE is showing early signs of selling exhaustion moderately than a confirmed trend reversal, with the subsequent move depending on how price behaves near this support zone.
