Dogecoin drops to 40 cents…risk or opportunity?

Whales trading on DOGE manipulate the market as usual, and this pushed the currency, one of the most famous memecoins, into a state of stagnation and volatility.

Analysts believe that caution in this case is very important, as the risks are greater than many might expect.

The story began just one month ago, when the Bitcoin currency BTC broke its records and exceeded $100,000 for the first time in its history, and maintained its upward trend. This led to the market turning green and investors rushing to diversify their investment portfolios.

Memecoins, including Dogecoin, received a lot of attention, but attention soon turned to alternative currencies that dominated the market, and even DOGE, which is a leading currency among memecoins, faced difficulty keeping pace with this development and gained only 5% during the period. 30 days ago.

Currently, Dogecoin (DOGE) is approaching its opening price last month at $0.4341, after two failed attempts to break the $0.5 level (50 cents), but it is a difficult resistance level, and despite this, the whales are pushing with all their might to break it.

Analysts disagree here between whether whales aim to push DOGE in the long term, whether they will continue to manipulate meme currencies, and leave DOGE stuck in a volatile state of stagnation.

Whales are manipulating the price of Dogecoin (DOGE).

It has become no surprise that US President-elect Donald Trump’s decisions have pushed many currencies onto an upward trajectory, providing great relief to large investors who have been stuck with their investments stagnating year after year.

DOGE was no exception to this. Over the past 3 years, its price remained confined to a narrow range between $0.06 and $0.15.

That’s why when DOGE recorded daily gains of more than 10% during the first week of the election, it was clear that those holding the coin would finally be able to reap the profits they had been waiting for.

Among them were major players who owned large amounts of DOGE, and who began transferring large amounts of tokens back to exchanges.

This continuous activity coincided with a long red candle (loss and large price difference) on the daily chart of the currency, showing a loss of 11% in one day, marking the third time that DOGE failed to breach the $0.48 resistance level.

With DOGE back in the $0.4 range, whales are already taking advantage, scooping up an additional 160 million coins.

Analysts believe that whales lure investors into DOGE into a tug-of-war game, buying at low prices and selling again at high prices and making profits.