Dogecoin saw a significant rebound from its lows of $0.21, finishing at $0.22 due to a late-session surge in trading volume and aggressive accumulation by whales, despite ongoing security threats from Qubic’s attack possibility.
News Background
- This month, DOGE has experienced pressure following reports about Qubic’s potential 51% attack, causing anxiety among retail traders and prompting selling.
- Nevertheless, on-chain data indicates that whale groups accumulated over 680 million DOGE in August, counteracting the outflows from retail investors.
- Overall market sentiment has been varied, with Bitcoin and Ethereum consolidating near their recent highs, resulting in notable volatility among memecoins.
Price Action Summary
- In the 24 hours ending August 21 at 04:00, DOGE rose by 5%, bouncing back from an intraday low of $0.21 to close at $0.22.
- The token reached its lowest point around 13:00 UTC on August 20, before experiencing a sharp recovery.
- Trading volume surged to 9.29 million in the final hour, contributing an additional 0.45% in the closing stages and confirming substantial institutional trading flows.
- Whales accumulated 680 million DOGE throughout August, positioning themselves amid lingering concerns regarding Qubic’s potential 51% attack.
Technical Analysis
- Strong support was established at $0.21, which was tested mid-session before a high-volume reversal occurred.
- Resistance emerged at the $0.22 level, creating a $0.01 trading range for the session.
- A breakout occurred at 04:31 UTC with the volume spike of 9.29 million marking a pivotal point for the session.
- Sustained turnover at 6.8 million per minute during the last hour indicates that larger buyers are driving market momentum.
What Traders Are Watching
- Whether the $0.22 level can transform from resistance to support, paving the way for movement towards $0.23–$0.24.
- Ongoing whale positioning trends in light of the security concerns posed by Qubic.
- The strength of follow-up buying after the late-session surge in volume will determine if the V-shaped recovery can sustain itself.
