Dogecoin [DOGE] Whales Accumulated Over 80M Coins Ahead of Breakout

Dogecoin [DOGE] has seen a significant accumulation phase, with whales acquiring over 80 million DOGE in just 24 hours.

Dogecoin [DOGE] has seen a significant accumulation phase, with whales acquiring over 80 million DOGE in just 24 hours.

This aggressive buying spree by major holders seemed to coincide with a fresh wave of bullish sentiment. Especially as the memecoin rebounded from its local lows.

At press time, DOGE was trading at $0.1638, up 4.07% in the last 24 hours. This, on the back of a significant recovery on the charts amid market-wide volatility. This renewed interest from deep-pocketed investors could be a sign of early positioning ahead of a potential breakout.

DOGE reclaims demand zone – Can bulls sustain momentum?

After bottoming out within the critical demand zone between $0.14109 and $0.15200, DOGE has rebounded with strength. The chart highlighted a clear higher-low structure forming, supported by aggressive whale accumulation during the consolidation phase.

The immediate resistance seemed to lie around $0.20139 – A level that previously acted as a reversal point during earlier rallies. If this level breaks, the next target would sit at $0.24388, aligning with late 2024’s mid-cycle peak.

Therefore, DOGE must maintain momentum above $0.18 to sustain bullish pressure as any weakness could trigger another retest of the demand zone.

Funding rates reflect healthy trader positioning

Over in the derivatives arena, Dogecoin’s Funding Rates across major exchanges, especially Binance, stood at 0.009161% as of press time.

This slightly positive rate suggested that long traders continue to pay a premium to maintain their positions, reflecting mild bullish conviction.

However, the lack of elevated rates also showed that traders are not overleveraging, which reduces the risk of sudden corrections. Therefore, DOGE finds itself in a balanced state where cautious optimism will fuel gradual upward movement without creating overheating risks.

On-chain activity shows signs of revival

At the time of writing, DOGE registered 68,324 daily active addresses and 40,514 transactions. While these figures were below the explosive highs of late 2024, they seemed to confirm a gradual re-engagement by users.

More activity often foreshadows speculative interest and new capital inflows – Both key ingredients for sustained price action.

If this trend continues, it could serve as the fuel DOGE needs to punch through its resistance level.

On the other hand, a deep divergence on the Relative Strength Index (RSI) signaled that the bulls might be losing some steam. As the price formed higher highs, the RSI failed to do the same, indicating potentially exhausted buyers.

On the bright side, the Total Value Locked (TVL) on Dogecoin was showing promise. As of press time, the TVL on the memecoin stood at $13,845,656. This was a 142.86% increase from yesterday and a 1,000% increase from last week.

As the saying goes, "never judge a book by its cover." Similarly, focusing solely on one indicator might not provide the complete picture. Combining various indicators and considering the broader market context is crucial for making informed investment decisions.

Stock-to-flow ratio spikes as perceived scarcity increases

On top of that, the altcoin’s Stock-to-Flow ratio jumped sharply to 128.94, reaching its highest reading in months.

Such a steep spike would mean that market participants are increasingly viewing DOGE as scarce, potentially adding upward pressure to long-term valuations. However, interpreting this signal in isolation could mislead investors.

It’s important to consider that the Stock-to-Flow ratio is derived from a model used for Bitcoin, which might not fully capture the complexities of memecoins like Dogecoin.

While the concept of scarcity is relevant for cryptocurrencies in general, directly applying a model designed for Bitcoin to Dogecoin could lead to skewed interpretations, especially when dealing with an asset as volatile and unique as DOGE.

The memecoin has also seen a significant recovery from its recent lows, reclaiming a key technical level as major holders, so-called ‘whales,’ continue to accumulate.

This interest from deep-pocketed investors could be a sign of early positioning ahead of a potential breakout.