Dogecoin tests critical support as 2 key areas see a rise

• DOGE stabilized above $0.35 support zone amid increased whale transactions.
• Dogecoin’s active addresses surged by 35% alongside its rising liquidation levels.

Dogecoin [DOGE] has been hovering above a key support level at $0.35. Its prices are currently in a consolidation phase after a significant surge over the last bullish week.

The popular memecoin has repeatedly tested this key support level, with the price level demonstrating remarkable resilience.

DOGE is maintaining a tight range between $0.36 and $0.38, with prices standing at $0.3698 at press time.

Source: TradingView

Whale activity signals potential momentum

A notable surge in Dogecoin’s whale activity has caught the attention of market participants.

According to IntoTheBlock data, the number of significant DOGE transactions has witnessed a substantial uptick, reaching peak levels not seen since early November.

In fact, the memecoin’s large transactions have surged significantly by 41% in the past 24 hours alone. This increase in whale activity often precedes major price movements.

Source: IntoTheBlock

DOGE’s bullish sentiment

AMBCrypto’s analysis painted an encouraging picture for DOGE bulls. The memecoin’s active addresses have jumped by an impressive 35% to 157.19K, indicating growing user engagement.

This increasing trading activity indicated that more traders and investors were convinced of the $0.35 support level and are taking long position to target the next significance resistance at $0.48.

Source: IntoTheBlock

Liquidation data adds complexity

Besides the aforementioned positive sentiments, our analysis of recent Coinglass data revealed significant liquidation leverage at current levels, with a liquidation pool of 4.97M at the $0.3812 price level. 

This substantial liquidation volume above DOGE trading price could act as a catalyst for increased volatility in the market. The liquidation pool adds a bullish bias to the already bullish market.

Source: Coinglass

What next for DOGE?

With significant support levels, increasing whale activity and growing network engagement, DOGE is set for a bullish rally.

However, market participants should remain mindful of the high liquidation leverage, which could introduce short-term price turbulence.

Read Dogecoin’s [DOGE] Price Prediction 2024–2025

All eyes remain on the $0.35 weekly support level as the market awaits clear directional signals.

The sustainability of current price levels, combined with ongoing network growth, may provide the foundation for DOGE’s next significant move.