Dogecoin whales bought 130 million Dogecoins during a 15% drop. The RSI indicator shows an oversold area, and the chart indicates a potential reversal.
During the recent price drop, large wallets increased their holdings by 130 million DOGE, indicating strategic accumulation at lower levels.
On the 4-hour chart, a potential double bottom pattern is forming, with key resistance at $0.2435.
As the number of wallets exceeds 109 million active addresses, the Dogecoin RSI has fallen into the oversold area.
Whales are buying aggressively during the market pullback.
According to data shared by Ali Martinez, in the past 24 hours, 130 million wallets holding between 10 million to 1 billion Dogecoin have been added. Meanwhile, the price of Dogecoin has fallen below $0.23, with a daily decline of 6% and a weekly decline of over 15%.
Meanwhile, the chart shows that large wallets' holdings are steadily increasing while the price is declining. This pattern often signals buying during market pullbacks, with whale investors preparing for future trends.
Martinez pointed out that this accumulation is a reaction to the recent price trend.
Potential reversal structure
Trader Tardigrade noted that Dogecoin may form a double bottom on the 4-hour chart. This pattern begins with two lows near the same price level, with a short-term rise in between.
The first low occurred on July 25, close to $0.2160. The second low occurred on July 29, slightly above the previous low. After the two lows, resistance levels were around $0.2435. The asset has tested this level multiple times but has not yet broken through.
If it breaks through $0.2435, it may open the door to a target near $0.27. However, if it falls below $0.22, this pattern will be invalidated.
Oversold signals appear on the 1-hour chart.
In another article, the same analyst shared a 1-hour chart showing a 10% drop in price over 17 hours. During this period, the RSI fell from an overbought state to below 30, which is considered oversold.
When the RSI drops to such a low level, it usually indicates that strong selling pressure may be easing. The chart shows that this asset may now pause its rise or change direction. Further confirmation is still needed.
Additionally, Glassnode data shows a steady increase in the number of Dogecoin addresses. As of the time of writing, the number of active addresses is 109.14 million, up from 108.5 million a month ago.
This gradual growth indicates a sustained increase in user interest. The price has fallen to lower levels, but network participation is increasing, indicating a rising trend in usage and retention.
