DOGE Whales Accumulate $500M Amid Golden Cross Signal
DOGE Whales Accumulate $500M, Sparking Rally Hopes
Large Dogecoin holders have acquired 2 billion DOGE in the past week, valued at nearly $500 million. This substantial accumulation coincides with a bullish technical indicator, the golden cross, triggering speculation of a significant price rally.
Currently, DOGE is trading near $0.24, marking a 17% increase over the last seven days.
Whale Activity Fuels Market Optimism
Data indicates that wallets holding between 100 million and 1 billion DOGE have been actively increasing their holdings. Analyst Ali Martinez reported a single-day purchase of approximately 230 million DOGE by these large holders, correlating with an 8% price increase during that period.
The recent whale activity has added around $5.5 billion to Dogecoin's market capitalization, now approaching $36.38 billion. Traders are closely watching these movements, as they often precede notable price shifts.
Golden Cross Pattern Emerges
A golden cross pattern formed on Dogecoin's daily chart this week, with the 50-day EMA crossing above the 200-day EMA. This pattern is generally viewed as a sign of potential upward momentum following a period of consolidation.
The last time this occurred for DOGE was in November 2024, preceding a 276% rally. Crypto analyst Altcoin Sherpa also noted that a Bitcoin breakout above its all-time high could favor a positive move for DOGE.
Key Technical Indicators
- Relative Strength Index (RSI): Shows moderately bullish momentum without being overbought, suggesting potential for further gains.
- Bollinger Bands: The price is trending toward the upper band, indicating breakout potential.
- MACD: The MACD line crossed above the signal line, entering positive territory, though the histogram remains small.
Critical Support and Resistance Levels
Traders are monitoring the $0.26 resistance level; a break above it could target $0.30 and potentially $0.32. On the downside, the $0.22 support level is crucial. A drop below this could lead to a retest of the $0.20 area.
The derivatives market for DOGE has seen over $10 billion in trading volume in the past 24 hours. Funding rates suggest a dominance of long positions, reflecting traders' bullish sentiment.
The combined influence of whale buying, technical patterns, and derivatives market activity is driving speculation on whether Dogecoin will mirror its previous golden cross rally.