Why Dogecoin is ready to take off — Whale moves breakout signal

The leading meme coin Dogecoin has seen a significant increase in interest from large holders over the past week, despite its relatively low price. DOGE has traded in a narrow range, with little momentum to break out in either direction. With the accumulation of whales increasing, this altcoin may be poised to break out to the upside in the near future. DOGE witnessed a 112% increase in accumulation by whales despite stagnant prices. According to IntoTheBlock, DOGE has recorded a 112% increase in the net inflow from large holders over the past seven days.

A large holder is a whale address that holds more than 0.1% of the circulating supply of an asset. Their net cash flow tracks the difference between the amount they buy and the amount they sell over a specific period. When the net inflow of large holders increases for an asset, more coins/tokens flow into the wallets held by these large investors rather than flowing out. This trend indicates that these holders are accumulating Dogecoin in the context of a bleak price environment, signaling confidence in its future value. Furthermore, while the price of DOGE has not reacted much to improvements in the overall market sentiment, futures traders continue to show confidence. This is reflected in the demand to maintain long positions. According to Coinglass, the funding rate for this coin is currently at 0.0026%.

The funding rate is a periodic payment between traders in perpetual futures contracts to keep the contract price in line with the spot price. When the funding rate is positive, the demand for long positions will be higher. This means that many traders are betting that the price of Dogecoin will increase. The accumulation of whales suggests a rise of $0.175 If this whale accumulation trend continues and positive sentiment increases, DOGE may be ready to break through to the level of $0.175. This move would mark a significant reversal from the recent consolidation phase.

Breaking through this important price barrier could open the door for a price increase of up to $0.206. However, if buying occurs in the pressure zone, the price of this altcoin may drop to retest the support level at $0.148.