Whales have accumulated over 200 million DOGE, showing strong confidence in the asset despite ongoing volatility.

This significant increase in holdings suggests that large investors believe in the memecoin's potential for future growth.

Whales have been massively accumulating Dogecoin [DOGE] over the past two weeks, showcasing strong confidence in the asset despite ongoing volatility.

This significant increase in holdings suggests that large investors believe in the memecoin’s potential for future growth.

Dogecoin price today: A decisive factor for next moves

As of press time, Dogecoin was trading at $0.1929, showing an increase of 4.59% in the last 24 hours. The cryptocurrency faced immediate resistance at $0.24243, which could be a key level to watch for further gains.

However, if DOGE falls below the support of $0.24243 and returns to the descending wedge channel, it could indicate a continuation of the downtrend.

Breaking below the descending wedge channel and bouncing from the Fib support level of 0.382 at $0.19311 could be a turning point for Dogecoin.

If the coin manages to break through the resistance at $0.24243 and sustain gains above this level, it could pave the way for a more substantial rally.

Dogecoin faces immediate resistance at $0.24243. Credit: TradingView

Still low daily active addresses and transaction count for DOGE

Despite the positive whale activity, Dogecoin’s network remains relatively inactive in terms of daily active addresses and transaction volume.

At press time, Dogecoin had only 31,212 active addresses, with a low transaction count of 8,898.

These figures suggest that while large investors are actively accumulating DOGE, the broader market participation is limited.

For Dogecoin to experience a more significant rally, it will need an increase in user adoption and transaction activity, which can help fuel sustained price growth.

Without these factors, any gains may be short-lived, driven primarily by whale influence.

Dogecoin has seen a sharp rise in the stock-to-flow ratio. Image: Santiment

The stock-to-flow ratio for Dogecoin has seen a sharp rise, currently sitting at 191.12. This indicates a potential reduction in the available supply of DOGE, suggesting increased scarcity.

A higher stock-to-flow ratio often correlates with upward price pressure, as fewer coins in circulation can lead to higher demand.

However, this metric alone is not enough to guarantee long-term price growth.

Additionally, the rise in the stock-to-flow ratio reflects the broader market’s response to limited supply, but it is essential for this trend to be sustained in order for the price to climb further.

Can Dogecoin hold momentum for a price rally?

Whale activity and a sharp rise in Dogecoin’s stock-to-flow ratio provide a strong case for the possibility of a price rally.

However, the current lack of broad market participation, as indicated by the low number of active addresses and transactions, could limit the potential for a sustainable increase in price.

Therefore, while the whale accumulation points to optimism, significant price movement will depend on greater market engagement and sustained increases in supply scarcity.