Dogecoin [DOGE] has taken a significant hit, flirting with last month’s opening price of $0.43410. The dip is attributed to “whale” activity, which may be manipulating the memecoin’s price. But are these whales trying to push DOGE long-term or manipulate meme-tokens?
In recent months, Dogecoin has struggled to keep up with altcoins, gaining only 5% in the last 30 days. However, big hands have been “pumping” DOGE back onto a bullish track, offering relief to large investors who’ve been stuck for years.
Big players, including those with sizable DOGE holdings, have been transferring tokens back into exchanges during daily gains over 10%. This has led to failed attempts to break past the $0.48 resistance, and ultimately, a 29% decline in Open Interest (OI) in the perpetual market.
Whales are capitalizing on DOGE’s recent dip, buying at the bottom for discounts and selling at the top for premiums, according to AMBCrypto. This behavior hints at a textbook market manipulation strategy. With ongoing market manipulation by big players, retail investors may be hesitant to invest in memecoins.
Considering these factors, 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 evolving datasets is crucial, as another risk might be just around the corner.
Source: https://ambcrypto.com/dogecoin-traders-is-the-dip-to-0-40-a-risk-or-an-opportunity-for-you