Dogecoin (DOGE) is currently trading close to an important support zone following a period of persistent downward pressure. A notable crypto analyst has indicated that there may be signs of weakening selling momentum after a prolonged decline. Since October, Dogecoin has experienced a significant drop, returning to price levels last seen earlier this year. As of this writing, DOGE is fluctuating around $0.13, maintaining proximity to recent lows despite repeated attempts from sellers to push the price down further.
According to crypto analyst BitGuru, Dogecoin seems to have executed a liquidity sweep near its support level, a maneuver that typically clears out sell-side liquidity following a lengthy downtrend. The recent price movements indicate a compression near these lows, a structural phenomenon often linked with the slowing of downward momentum. The identified support zone aligns with previous consolidation ranges from earlier in the year, enhancing its technical significance.
However, BitGuru cautioned that mere stabilization does not guarantee a reversal; the price must consistently stay above the current range. Despite indications of reduced selling pressure, Dogecoin continues to trade below several former support zones that have now converted into resistance levels. The prevailing price structure still reflects a series of lower highs formed over recent months, indicating that the near-term trend remains pressured.
The analyst emphasized that for any recovery attempts to succeed, there must be sustained spot buying, coupled with follow-through above these resistance levels, rather than transient speculative movements. In a related observation, data from the market revealed a rise in activity among large holders during this period. A recent post by the account CEO Investments highlighted that wallets classified as whales have accumulated over 300 million DOGE within the last 24 hours, coinciding with the price hovering near the identified support area.
While this accumulation represents a minor fraction of Dogecoin“s circulating supply, the activity is notable compared to recent patterns among wallets and occurred in tandem with the support test. It remains unclear whether this accumulation indicates long-term positioning or short-term trading strategies.
BitGuru characterized the current situation for Dogecoin as a pivotal moment. Maintaining a position above the current support range could pave the way for a short-term relief rally. Conversely, a decisive breach below this support might undermine the stabilization narrative, keeping the risks for further downside in focus. At this stage, the analysis suggests that Dogecoin is demonstrating initial signs of selling exhaustion, yet the next move will heavily depend on how the price interacts with the support zone.
