On Tuesday, July 29, a majority of major cryptocurrencies, including Dogecoin, witnessed a slight surge in selling pressure. In the daily chart, the Dogecoin price shows a neutral body candle with long rejections on either side, as market sentiment wobbles between the broader market pullback and the increasing whale accumulation. As the memecoin price seeks support from the bottom trendline of a bullish continuation pattern, the buyers could plot their next breakout.
Whales Accumulate 130 Million DOGE Amid Market Pullback
Over the past week, the Dogecoin price has shown a notable correction from $0.287 to the current trading price of $0.224, accounting for a 22% loss. This pullback aligns with the broader market pullback as the majority of major cryptocurrencies attempt to recover the exhausted bullish momentum.
An intraday sell-off of over 1% signals the continuation of the bearish momentum in Doge Price as it currently trades at $0.223. However, the pullback was countered by a significant accumulation from a crypto whale, which signals the renewed buy-the-sentiment in the market.
According to market analyst Ali Martinez, high-net-worth investors have accumulated 130 million DOGE over the last 24 hours.
Historically, such substantial buying trends have coincided with major market reversals or continued recovery in price.
Pennant Pattern Prepares Next Major Breakout in Doge Price
In the first three weeks of July, the Dogecoin price shows a high momentum rally from $0.156 to a high of $0.2875, registering 83% growth. However, the coin price entered a brief correction in the month’s final week, which interestingly resonated within two converging trend lines.
This correction revealed the formation of a bullish continuation pattern called a pennant in the 4-hour chart. The chart setup is commonly spotted in the middle of an established upturn, as it allows the buyers to replenish the exhausted bullish momentum.
The DOGE price recently bounced from the pattern’s lower trendline, which could drive a 2.56% surge to challenge the overhead downslope trendline at $0.23. A potential breakout from this resistance will signal the continuation of the prevailing recovery and lead to a 26% jump to surpass the multi-month resistance of $0.286.
However, the $0.286 stands as a high supply region for the dog-themed memecoin, suggesting the price could drive a sideways action before offering a sustainable breakout.
