Dogecoin traded close to the $0.10 mark after surging roughly 25% over the past week, as buying activity from large holders appeared to intensify during its recent September price correction.
Whales accumulate during downturn
Data showed that significant wallet addresses accumulated more than 240 million DOGE between September 9 and September 14. This accumulation occurred while Dogecoin’s price fell from approximately $0.091 to $0.081, indicating that several large investors saw opportunity as the token dipped.
The timing of these purchases suggests that major players considered the $0.08 region an attractive entry point. Following this accumulation, Dogecoin rebounded toward the $0.10 level, which is widely seen as a key psychological barrier for the meme-based cryptocurrency.
DOGE’s rebound toward $0.10 followed a period where whale wallets accumulated hundreds of millions of tokens as the market pulled back, hinting at renewed confidence among large holders.
Coinpaper noted that short position liquidations had already propelled Dogecoin higher by 14%, helping to fuel the broader rally seen over the week.
Technical levels and market risks
Dogecoin is now testing whether $0.10 can become a new support zone. Market observers say that holding above this level could pave the way for an initial climb to the $0.108–$0.11 range, with $0.12 viewed as the next major resistance area if the upward momentum continues.
| Support/Resistance | Price Level |
|---|---|
| Current support test | $0.10 |
| Next resistance | $0.108 – $0.11 |
| Higher target | $0.12 |
Futures open interest stands near $1.67 billion and derivatives trading volume has surpassed $3 billion, reflecting heightened activity from leveraged traders. However, analysts have warned that an overreliance on leverage could create vulnerability if momentum fades.
There is also the risk that growing whale holdings alone may not sustain the rally unless spot demand also increases. After such a rapid weekly rise, broader investor participation is needed for DOGE to remain above the key $0.10 level.
Weak institutional demand
Compared to leading digital assets such as Bitcoin, Ethereum, and XRP, institutional demand for Dogecoin remains subdued. Asset manager Bitwise recently decided to close its Dogecoin ETF, citing insufficient investor interest as the main reason.
Mini dictionary: Bitwise, a US-based asset manager specializing in cryptocurrency funds and index products, operates several crypto-related investment vehicles catering to institutional and individual investors. Its decision to discontinue the Dogecoin ETF highlights challenges in attracting consistent institutional flows to DOGE-based products.
Without a pickup in both spot and institutional buying, analysts remain cautious about the sustainability of the rally and whether Dogecoin can maintain its current gains.
