Dogecoin Price Faces Key Test as Whales Defend Against Dip

Dogecoin price has been on a wild ride this September. After gaining more than 54% in three months, the meme coin has pulled back nearly 5% in the past 24 hours. Traders fear the rally is cooling, but a closer look shows a battle playing out beneath the surface.

Retail wallets have rushed to sell, while whales have quietly stepped in to defend the trend. The question now is whether their support is enough for the DOGE price to reclaim $0.29, a deciding level for the next leg.

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Sellers and Buyers Move in Tandem, but One Group Has the Edge

Data shows exchange net position change — the flow of coins in and out of trading platforms — has turned strongly positive since September 11, when news broke of a delayed Dogecoin ETF launch.

A positive reading means more DOGE is being deposited than withdrawn, signaling higher selling pressure. Between September 7 and 15, exchange balances swelled by 4.96 billion DOGE (almost $1.29 billion), the highest inflow in a month.

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At the same time, whales were active. Holders of more than 1 billion DOGE added 540 million tokens ($140 million) between September 13 and 15.

Another cohort holding 10 million to 100 million DOGE grew their stash by 350 million tokens ($91 million). Combined, whales absorbed about 890 million DOGE ($231 million) in just a few days. While this covers only part of the retail selling (18% at press time), it shows conviction that the broader trend still has life.

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For now, however, sellers hold the edge: their inflows outweigh whale buying, and that explains Dogecoin’s latest dip.

Dogecoin Price Chart Outlook: Can DOGE Reclaim $0.29?

The 4-hour chart suggests sellers may be losing steam. We look at the 4-hour chart here to capture early trend shifts inside the broader rally.

Despite the correction, DOGE has formed a hidden bullish divergence on the RSI (Relative Strength Index), which tracks momentum by comparing gains and losses. The DOGE price has formed higher lows since September 7, while the RSI has formed lower lows. This often signals weakening selling momentum and a chance for the uptrend to resume.

Key levels are now in play. Support rests at $0.25 and $0.23. On the upside, reclaiming $0.29 would set the stage for a push to $0.30 and beyond. The key resistance of $0.29, identified on the chart, aligns with the analyst’s view of DOGE’s price pattern.

For now, Dogecoin stands at a crossroads. Retail selling has the upper hand, but whales remain the last line of defense. If selling eases and whale conviction holds, DOGE could find the momentum it needs to reclaim $0.29. However, a dip under the $0.23 would invalidate the remaining bullishness for now.