Dogecoin encountered significant selling pressure at the $0.26 level on October 9th, leading to a pullback as traders took profits. Despite this short-term setback, underlying market data reveals a more complex battle between sellers and accumulators, leaving its near-term direction hanging in the balance.
A Battle at the $0.26 Ceiling
The rally that pushed Dogecoin toward the $0.26 mark was met with immediate and forceful selling. This price level has solidified as a major resistance point, creating a barrier that has so far capped upward momentum. The rejection was severe enough to trigger a cascade of liquidations, where leveraged long positions were forcibly closed, accelerating the downward move toward the $0.25 support level. The trading volume during this event spiked to around 750 million DOGE, nearly double the daily average, confirming the intensity of the sell-off.
Whales Buy the Dip
While the price action pointed to distribution, on-chain data painted a contrasting picture of accumulation beneath the surface. Even as the price dipped, large wallet addresses, often called “whales”, added approximately 30 million DOGE, worth about $8 million, to their holdings. This significant buying activity suggests that larger, potentially more strategic investors saw the dip as a buying opportunity, providing a layer of underlying demand that may help stabilize the price.
The Path Ahead for DOGE
The immediate future for Dogecoin hinges on a few key technical levels. The $0.26 resistance remains the primary ceiling that bulls need to break for a sustained upward move. A decisive daily close above this level could open the path toward the next resistance targets between $0.27 and $0.30.
On the downside, the $0.25 level is a critical short-term support to watch. A break below this could see the price test the next significant support zone around $0.24. Traders will be monitoring whether the ongoing whale accumulation can continue to absorb selling pressure or if the resistance at $0.26 will prove too strong, leading to a deeper retracement.
