- DOGE whales are playing a textbook market manipulation game, driving the memecoin into a volatile slump.
- With the stakes higher than many might expect, caution is key.
Just a month ago, Bitcoin [BTC] shattered records, hitting 100K for the first time. Since then, the coin has sustained the uptrend, turning the market green as investors raced to diversify their portfolios.
Memecoins had their moment, but the spotlight quickly shifted as altcoins seized control. Even Dogecoin [DOGE], the top memecoin, struggled to keep up, gaining just 5% in the last 30 days.
Now, DOGE is flirting with last month’s opening price of $0.43410, after two failed attempts to break $0.50. $0.50 is proving to be tough resistance, but whales are pushing hard to break through.
The big question is: Are these whales aiming for a long-term push for DOGE, or will they keep manipulating meme-tokens, leaving DOGE stuck in its volatile slump?
Big hands are manipulating DOGE’s price
It’s no surprise that the ‘Trump pump’ has pushed many coins back onto a bullish track, offering much-needed relief to large HODLers who’ve been stuck as their investments stagnated year after year.
DOGE was no exception. For the past three years, its price remained trapped in a tight range between $0.06 and $0.15.
So, when it posted daily gains of over 10% during the first week of the election, it was clear that these HODLers would finally cash in on the profits they’d been waiting for.
Among them were big players with sizable DOGE holdings, who began transferring significant amounts of tokens back into exchanges.
This flurry of activity coincided with a long red candlestick on the daily chart, showing an 11% loss in a single day – marking the third time DOGE failed to break past the $0.48 resistance.
But this may only be the tip of the iceberg. As DOGE dips back to the $0.40 range, whales are already capitalizing on the opportunity, scooping up an additional 160 million tokens.
According to AMBCrypto, this behavior hints at a strategy to manipulate DOGE in a ‘tug-of-war’– buying at the bottom for discounts and selling at the top for premiums, a textbook move in market manipulation.
So, should you buy the dip?
From a broader perspective, market-wide volatility has unsettled new entrants, pushing them toward low-to-mid cap assets as safer bets. Many of these assets have seen nearly 10% gains from the previous day.
Additionally, ongoing market manipulation by big players is likely to keep retail investors wary, making them hesitant to invest in memecoins.
Combined, these factors suggest that the $0.40 level represents a strong ‘dip’ supported by whale activity, but with a clear ‘buy at your own risk’ warning.
If you’re ‘long’ on DOGE, staying updated with these evolving datasets is crucial. This isn’t over yet, and another risk might be just around the corner.
Source : Coinglass
After its recent pullback from $0.48, as whales retreated, the Open Interest (OI) in the perpetual market has tumbled from an all-time high of $4.45 billion to $3.16 billion, signaling a staggering 29% decline in under a week.
As is often the case during a ‘dip,’ both retail and institutional players jumped in, scooping up huge amounts of DOGE tokens, hoping for major gains.
Read Dogecoin [DOGE] Price Prediction 2024-2025
This prompted futures traders to go ‘long’ on DOGE’s price. However, whales holding massive stakes can easily sway the market.
Their sell-offs triggered an 11% drop in price, forcing long positions to close, and deepening the decline.
As whales eye the dip again, caution is essential. Unless DOGE breaks the $0.50 mark, this pattern may repeat. Keep an eye on these big players in the coming days—this isn’t over yet.
