Dogecoin Whale Activity Spikes: Breakout Imminent?
Dogecoin (DOGE) is experiencing significant activity from large investors. Whale accumulation has seen a remarkable 112% increase over the past week, signaling renewed confidence in the memecoin.
Increased Whale Accumulation
Data from IntoTheBlock reveals a 111.97% surge in netflow from large holders (wallets controlling over 0.1% of DOGE's circulating supply) during the past week. This significant increase mirrors similar accumulation patterns observed in 2021, suggesting a potential price upswing.
Despite this surge in whale activity, DOGE's price has only seen a modest 5% increase in the last 24 hours, trading at $0.172 at the time of writing. This suggests a cautious market sentiment awaiting a clearer confirmation of a bullish trend.
Bullish Futures Market
The futures market presents a more optimistic outlook. Funding rates on CoinGlass remained positive, with DOGE's OI-Weighted Funding Rate hovering near 0.0086%, peaking at 0.01% on July 6th. This indicates that traders are maintaining long positions, betting on a future price increase.
Technical Analysis: Cautious Optimism
The Relative Strength Index (RSI) stands at 51.04, slightly above neutral territory, hinting at mild bullish momentum. However, it doesn't decisively confirm a dominant trend. The On-Balance Volume (OBV) shows an increase to 46.3 billion, suggesting improving but still cautious buying interest. A decisive break above the $0.18 resistance is needed to confirm a sustained bullish breakout.
What's Next for Dogecoin?
While whale accumulation and positive futures funding rates signal potential upside, DOGE requires a stronger price push to confirm a bullish breakout. The current price action shows resilience, but sustained buying pressure is necessary to overcome the $0.18 resistance level. We will continue monitoring this closely.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves significant risk.
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