Dogecoin (DOGE) Bulls: Whale Activity Signals Potential Price Surge

Dogecoin Bulls Eye Breakout as Key Metrics Align

Dogecoin (DOGE) has shown resilience with a 14% gain over the past month and a 130% increase year-over-year. Despite a recent 24-hour dip, DOGE remains one of the few meme coins in the green for the week, raising the question of whether this is a consolidation phase or the beginning of trend fatigue. However, emerging signals suggest further upward movement is possible.

Whale Accumulation Indicates Confidence

Since August 14, wallets holding at least 1 billion DOGE have increased their holdings from 70.84 billion to 71.11 billion DOGE, representing an addition of approximately 270 million coins. This buying activity occurred as the Dogecoin price tested a key short-term support level of $0.21, demonstrating large holders' belief in the coin's potential.

Selling Pressure Appears to Be Subsiding

The Dogecoin “Spent Coins Age Band” metric, which tracks the movement of previously dormant coins, indicates a decrease in selling pressure. This means fewer older coins are entering the market, which can be a positive sign during consolidation periods.

DOGE's spent output has decreased from 429.77 million to 209.72 million. The combined effect of whale accumulation and reduced selling pressure points towards a positive outlook for Dogecoin.

Technical Analysis: Ascending Triangle Formation

Analyzing the 4-hour chart reveals that DOGE is trading within an ascending triangle pattern. Key resistance levels to watch are $0.232, $0.239, and $0.246. A decisive break above $0.232 could signal renewed buying momentum.

The Bull Bear Power indicator is showing signs of recovery, indicating that selling pressure is weakening. However, a significant drop below $0.216 would invalidate the short-term bullish outlook and potentially lead to further downside.

If whale accumulation continues and the Spent-Age metric remains low, a breakout above the resistance levels is the more likely scenario for Dogecoin. As always, careful risk management and due diligence are crucial in crypto investing.