Dogecoin Price as Whales Buy 1.5B DOGE after Musk & Trump’s Tweet

Dogecoin price broke out of a key bullish reversal structure but faces overhead resistance around $0.15. Breaking through this barrier is crucial for the asset to rally toward the $0.25 mark. Meanwhile, Elon Musk tweeted a poster of him and Donald Trump regarding his earlier proposition of surviving in the D.O.G.E. Will Musk’s hype propel DOGE’s price to new yearly highs?

Donald Trump Retweets Elon Musk’s Post, Dogecoin Price Drops 4%

On September 28, Elon Musk shared a poster of Donald Trump and himself with regard to the Department of Government Efficiency (D.O.G.E) he said he was available to serve in a few months ago. There was also a picture of a Shiba Inu dog, the symbol of the Dogecoin cryptocurrency. Donald Trump retweeted Musk’s post, further sparking bullish sentiment around DOGE. The price of DOGE jumped 3.68% before it began retracing on September 29.

pic.twitter.com/PHPAbiYagy

— Elon Musk (@elonmusk) September 28, 2024

Meanwhile, a recent post has claimed that a whale had purchased over 1.4 billion DOGE worth $176 million. Dogecoin creator Billy Markus (AKA Shibetoshi Nakamoto) reacted to the post, further drawing more attention to the event, wondering if this purchase is what triggered the DOGE price rally on September 27.

The DOGE price has dropped by 4% in the last 24 hours and is trading at $0.1217.

DOGE Price Drop as Traders Book Profits

An analysis of traders’ behavior shows that the Dogecoin price is headed down in the short term as traders lock in the 24% gains added in the last 3 days. A look at the Coinglass crypto derivative visual screener (CDVS) shows traders are closing their longs in losses. When this happens, they usually open Shorts. 

However, the Coinglass DOGE liquidation map tells a different story. While there is indeed some selling pressure on the daily timeframe, traders remain overall bullish on Dogecoin on the weekly and monthly timeframes. There are approximately $69 million worth of DOGE Longs, against $55 million in Shorts.

Additionally, a deeper analysis of the liquidation map shows there is a stronger support between $0.1068 and $0.1200, with the largest long-leverage trades placed at $0.1180 and $0.1100.

Looking at the technical analysis reveals why traders are still bullish on Dogecoin price in the long-term.

DOGE Price Could Rise By 94% After This Happens

Traders seem to be convinced of Dogecoin’s ability to surge higher after it recently broke out of a falling wedge, which is a bullish reversal pattern. This pattern is significant because it spans seven months. A long consolidation time usually results in an explosive move upward.

In addition to this, Dogecoin price has also broken above a mini double bottom but is currently retracing before bouncing higher. This explains why traders on the daily timeframe are closing in losses — to avoid potential liquidation in the retest. However, after the pullback to $0.1100 is complete, there is likely to be an overwhelming amount of buying pressure on DOGE that could send it to $0.25.

Dogecoin price prediction shows that if it breaks below $0.1100 in the current pullback and fails to return above it, it may signal crypto market weakness. What follows next could be a drop lower to $0.1000 or $0.0800, which would invalidate the current bullish thesis.