Are Dogecoin whales setting a trap above $0.4? Here’s what to expect from the DOGE price rally.

Dogecoin trades without much change as the rally has held it between $0.33 and $0.31 for over a week. This signifies a significant decrease in volatility, which has been recorded to have shifted traders’ attention away from the token. Nonetheless, the token has generated greater interest for whales than market participants, as it has quietly amassed over 90 million DOGE over the past few days.

This accumulation indicates that whales are attempting a massive DOGE breakout by buying in bulk. Interestingly, this accumulation by whales does not appear to hold the tokens for long, as they may soon begin a significant decline. According to data from Coinglass, a large cluster of clearing leverage accumulated at $0.42 and later at $0.49.

The data showed that over $70 billion was leveraged between $0.41 and $0.43, a strong resistance level. Therefore, whales appear to be looking for areas of high liquidation volume to quickly execute short-term trades around these levels. If the price holds and holds above this level, the token could face another resistance between $0.485 and $0.5, where it has accumulated over $50 billion.

What’s next? Could DOGE price reach $0.5?

Historical DOGE price charts suggest that the token is repeating previous trends, but technically it shows divergent trends, which is concerning. Prices are moving out similar to before, but MACD suggests buying pressure is easing. On the other hand, the accumulated amount of tokens appears to have decreased with a slight increase in distribution levels. Therefore, this suggests that a decline below $0.3 is likely in the coming days, which could lead to massive liquidations that would push the price towards higher targets.

Previously, when the Dogecoin price triggered a breakout in 2021, the market turned bullish and started a bull market. So it will be interesting to see if history repeats itself and the potential impact of this breakout on the market.