Dogecoin (DOGE) Price Rally Faces Setback but Could Still Surge to $0.13

Dogecoin is facing another setback in its attempt to break out. For the third time this month, Dogecoin (DOGE) price rally has struggled to rise above its crucial resistance line, despite growing signs of a broader market recovery and a slowdown in selling activity among traders.

While DOGE has managed to hold strong within its horizontal trading range, the question remains: What’s holding back the Dogecoin (DOGE) price rally? Despite improvements in the overall cryptocurrency market, Dogecoin has faced persistent selling pressure, especially from retail traders, while whale accumulation has notably increased.

Dogecoin’s Battle Between Buyers and Sellers – Dogecoin (DOGE) Price Rally

Since August 4, Dogecoin (DOGE) price rally has remained range-bound between its upper resistance at $0.11 and lower support at $0.09. Each time it has approached the resistance, sellers have stepped in, causing the price to stall. Last weekend marked the third attempt in seven weeks for Dogecoin to break past $0.11, only to be met with fresh selling pressure.

However, there’s an important contrast to note: while retail traders have been offloading some of their holdings, whale addresses have increased their accumulation. According to on-chain data, Dogecoin’s large holders — those who control over 0.1% of the circulating supply — have been buying more DOGE, with netflows increasing by a staggering 179% over the past month.

This uptick in whale accumulation reflects rising confidence in Dogecoin’s long-term prospects. Large holders are often seen as market movers, and their sustained accumulation could signal that a significant price breakout is possible once resistance is breached.

While the Dogecoin (DOGE) price rally has captured the attention of whales, retail traders remain cautious. Retail traders, often referred to as “paper hands,” are known for selling their assets quickly at the first sign of market uncertainty.

Over the last 30 days, these retail investors have reduced their holdings by approximately 2%. While this percentage seems small, their influence over DOGE’s price action cannot be understated, as they control a significant portion of the total supply.

The caution shown by retail traders has slowed down any potential momentum for Dogecoin (DOGE) price rally. If these holders continue selling, they could suppress the coin’s upward trajectory, regardless of whale accumulation. As the balance of power between retail traders and whales continues to shift, market sentiment remains the key factor that will determine Dogecoin’s next move.

Dogecoin (DOGE) Price Rally: The Decisive Factors To Break Past Resistance

For the Dogecoin (DOGE) price rally to break past the crucial $0.11 resistance, the overall market sentiment must improve. According to market analytics, Dogecoin’s weighted sentiment has been stuck in negative territory since mid-September, currently sitting at -0.63.

This metric measures the mood and perception of the broader market toward the asset, and negative sentiment typically correlates with a lack of buying pressure and continued price stagnation.

As Brian Quinlivan, marketing and social media director at Santiment, noted, “Sentiment plays an outsized role in meme coins like Dogecoin. When the market feels good about DOGE, it can lead to significant price moves, but the opposite holds true when sentiment is negative.”

If sentiment flips and retail traders slow down their selling activity, Dogecoin price rally could finally break through the $0.11 resistance level. Analysts suggest that if Dogecoin manages to successfully retest this level, its price could surge by up to 25%, pushing it toward the highly anticipated $0.13 mark.

One of the most positive indicators for the Dogecoin (DOGE) price rally is the steady accumulation by whales. As mentioned earlier, whale addresses have ramped up their buying over the past month, with netflows increasing by 179%.

Historically, whale accumulation has often preceded major price rallies, as large holders can absorb any selling pressure from retail investors, creating a foundation for price appreciation.

In fact, Rafael Schultze-Kraft, co-founder of Glassnode, commented, “Whale activity is one of the most important indicators of future price movement in any cryptocurrency. When whales start accumulating, it’s usually a sign that they expect significant upside potential in the near term.”

The sustained whale activity in Dogecoin suggests that the meme coin could be on the verge of a breakout, provided it can overcome the selling pressure from retail investors.

Dogecoin (DOGE) Price Rally: Can DOGE Reach $0.13 at The Price Prediction?

So, can the Dogecoin (DOGE) price rally break through its current trading range and reach $0.13? The answer lies in market sentiment and retail participation.

If sentiment improves and retail traders become less risk-averse, Dogecoin could see a surge in buying pressure, pushing it past the $0.11 resistance level. In this scenario, a 25% price increase is entirely possible, with DOGE potentially climbing to $0.13.

However, if market sentiment remains negative and retail traders continue to offload their holdings, Dogecoin’s price may stay range-bound for the foreseeable future. A breakdown in support at $0.09 could even lead to a drop toward $0.08, invalidating the bullish outlook.

While the Dogecoin (DOGE) price rally faces challenges, there are still reasons for optimism. Whale accumulation, combined with the potential for a sentiment shift, could fuel a breakout in the near future.

The key factors to watch are the behavior of retail traders and overall market sentiment. If these align in DOGE’s favor, the meme coin could be on track to reach the elusive $0.13 mark.

For now, the Dogecoin (DOGE) price rally remains a battle between buyer confidence and selling pressure, but the signs of a potential breakout are there. Get more from The Bit Gazette.