Dogecoin plunges 31 percent in May as whale buying climbs

Dogecoin, which saw sustained selling pressure throughout May, is once again catching the attention of investors. The popular meme coin dropped sharply from a monthly high of $0.113 to as low as $0.078, marking a steep 31 percent decline. Despite this drop, DOGE has managed a modest recovery and was trading between $0.083 and $0.085 at the time this report was filed.

Technical indicator signals a potential rebound

A widely-followed technical tool, the TD Sequential indicator, has flashed a buy signal for Dogecoin. Notably, this same indicator provided a sell signal back on May 7, which preceded Dogecoin’s recent downward trend. For that reason, the latest signal is drawing attention for its implications on the short-term outlook.

Quick glossary: TD Sequential is a technical indicator designed to detect whether an existing trend is losing strength in price movements. It’s most often used to identify possible reversal areas but does not independently confirm trend direction.

However, analysts caution that a single indicator is not enough to confirm a lasting trend reversal. For any upside move to gain traction, DOGE needs to hold its current support range and overcome nearby resistance levels.

The current analysis highlights a key support zone for DOGE between $0.080 and $0.083. Over the last 24 hours, the asset’s highest level reached was $0.085313, with trading volume totaling around $654 million. The Relative Strength Index (RSI), a gauge of momentum, was recorded at 32.61. This data suggests that although selling pressure is easing, there is still no clear sign of a strong upward move.

Whale accumulation and futures market activity climb

Another noteworthy trend is increased buying by large holders, sometimes called “whales.” Data shared by Ali Charts shows that whales have accumulated more than 200 million DOGE within the past week. Thanks to its wide appeal among investors and strong social media presence, Dogecoin remains a hot topic in crypto circles.

Activity is also picking up in the derivatives market. Coinglass data reveals that Dogecoin futures trading volume jumped 8.76 percent, reaching $1.47 billion. Open interest, which measures the value of outstanding futures contracts, rose by 2.52 percent to $1.03 billion. In contrast, DOGE’s spot market net inflow hovered at about $53,940—a limited value compared to prior periods of intense selling.

Key levels tracked for recovery prospects

Market analyst Team LAMBO points out that DOGE recently tested an important monthly order block and rebounded after absorbing liquidity beneath its recent lows. According to the analyst, overall market structure currently appears stable.

For Dogecoin to build stronger upward momentum, $0.096 stands out as a critical threshold. A close above this level on a daily chart could provide the first strong evidence that bearish pressure is subsiding. The next target area would be in the $0.100 to $0.110 range.

If DOGE breaks through $0.100 resistance, technical projections point toward the $0.12 and $0.15 price levels coming into focus. Most recently, DOGE was changing hands at $0.08468, giving it a market capitalization of $14.42 billion, with a 24-hour trading volume of $613 million.

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