Can Dogecoin Price Bounce From High Confluence Zone as Whales Buy 280M DOGE?

Dogecoin (DOGE) could bounce from a high confluence zone, which also marks a strong support level, after the recent 16% decline within seven days. The looming bounce coincides with aggressive whale buying after large addresses bought 280 million DOGE tokens in the last 24 hours.

Dogecoin price trades at $0.188 today, June 5, with a 4% intraday loss. DOGE is likely tracking Bitcoin, whose price has dropped below $105,000 again.

Dogecoin Price Set to Bounce From High Confluence Zone

Dogecoin price has entered a high confluence zone between 0.177 and 0.182, where it may find support and bounce if both retail and whale accumulation surge. This zone is characterized by the convergence of multiple technical structures that all point to it being a crucial support for this top meme coin.

The first technical structure is the falling wedge pattern that has been in play for nearly three weeks. The confluence zone, as shown in the chart below, aligns with the lower trendline of this pattern, and if DOGE price can bounce from here, it will confirm a bullish reversal.

Secondly, this zone coincides with the 161.8% Fibonacci level, which often marks a strong support. If Dogecoin can successfully defend this support, it will aid the next bullish leg to the first resistance at $0.20 before the run-up to $0.25 occurs.

For Dogecoin price to confirm a strong bounce from this zone, the RSI needs to cross back above 50, and at press time, the metric stood at 39. If it rises and crosses above 50, it will confirm that the momentum has turned bullish, and this could validate this bullish outlook.

However, Dogecoin has several headwinds to overcome before such a rally commences. This includes a bearish flag pattern identified in a recent CoinGape analysis. The pattern suggests Dogecoin may crash to $0.165 before rebounding.

Whales Scoop 280M DOGE Tokens

Data from Santiment shows that Dogecoin whales have been rapidly accumulating the meme token during the recent price dip. The gradual accumulation is seen with the addresses holding between 10 million and 100 million DOGE tokens.

In the last 24 hours, the total DOGE holdings for these addresses have increased from 24.19 billion to 24.47 billion. This shows that the addresses have purchased 280 million tokens, which are worth approximately $50.4 million at the current Dogecoin price.

As the chart above shows, these addresses hold the highest amount of DOGE tokens since mid-March after a gradual accumulation over the last month. Such heavy whale accumulation usually signals that the price of a token may recover in the near term.

Considering the entry of Dogecoin price to a high confluence zone, it is likely that the price may bounce and possibly reach $0.25 in the near term. Meanwhile, whale holdings have surged to the highest level since mid-March. However, Dogecoin needs to overcome the ongoing bearish sentiment for it to make a strong rebound to the upside.

For more details on Dogecoin price forecast between 2025 and 2030 – Read This.