Dogecoin (DOGE) price remains under pressure this week

Dogecoin price remains under pressure this week as a risk-off sentiment prevailed in the crypto and stock markets.

Dogecoin (CRYPTO: DOGE) dropped to $0.2200 on Tuesday, continuing a weak trend this week as risk-off sentiment affected the crypto and stock markets.

This decline, however, could be a calm before the storm ahead of an eventual rebound. Here’s a breakdown of what analysts observed.

What Happened: One of the top leading indicators in crypto fundamental analysis is whale activity. Whales, or large investors, are often seen as being more sophisticated and experienced players in the crypto market.

For the most part, whales tend to prefer accumulating an asset when they expect it to bounce back and short an asset when they see it falling.

Data shows that Dogecoin whales have started accumulating the coin. Santiment data reveals that addresses with between 1 million and 10 million DOGE coins now hold 10.56 billion coins, compared to 10.48 billion on May 10.

Similarly, addresses holding between 100 million and 1 billion tokens now hold 25.86 billion coins, compared to 25.53 billion earlier this month.

Dogecoin price action also formed a bullish flag pattern, which is a continuation pattern that signals more gains to come. The pattern is made up of a vertical line and then a consolidation that resembles a flag being hoisted.

The pattern often leads to a breakout.

The daily chart shows Dogecoin price reached a high of $0.2600 last week and then began a move lower to $0.2200 on Tuesday.

Dogecoin price also moved above the 50-day and 100-day Exponential Moving Averages, a technical indicator that could indicate more gains to come.

"The coin will likely break out and then hit the November 2024 high of $0.4820, up 120% from the current level," one analyst said.

Dogecoin Price Action: Dogecoin has dropped 10.74% in the past seven days and fell 2.03% over the past 24 hours at press time.

What Next: The weekly chart also points to more Dogecoin price gains as it has formed a giant megaphone pattern. The pattern is made up of two ascending and diverging trendlines.

In this case, the lower line connects the lows of the swing since January 2022 and the upper one links the highs since January 2023.

The pattern also usually leads to more gains. If this happens, the first point to watch will be at $0.4820. A move above that level could signal more upside, potentially to the psychological point at $1.