Dogecoin Whale Accumulation Increases by 112% During Positive Market Sentiment
Dogecoin has experienced a notable uptick in interest among prominent investors, with whale accumulation spiking by 112% in the past week. This substantial uptick in holdings by large investors, categorized as those with more than 0.1% of DOGE’s circulating supply, signals a renewed faith in the meme-based cryptocurrency despite its modest price increases.
The netflow of Dogecoin, which gauges the movement of coins between wallets, has surged by 111.97% in the last week. This significant turnaround in netflow echoes patterns witnessed during prior accumulation phases in 2021, indicating that major holders are once again optimistic about DOGE. Positive funding rates in the futures market further bolster this sentiment, with DOGE’s OI-Weighted Funding Rate hovering close to 0.0086% and peaking at about 0.01% on July 6th. This points to traders anticipating a price upswing, despite DOGE not responding robustly to the broader market rally.
Although whale accumulation and encouraging funding rates have increased, Dogecoin’s price has only inched up by 5% in the last 24 hours, reaching $0.172 at present. The Relative Strength Index (RSI) is positioned at 51.04, just above the neutral zone, indicating modest bullish momentum without a clear trend bias. The On-Balance Volume (OBV) has risen to 46.3 billion, suggesting an uptick in buying interest with caution. While recent price movements exhibit resilience, a definitive break above the $0.18 resistance level is necessary for DOGE to confirm a bullish breakout.
To sum up, while there are early indications of momentum accruing for Dogecoin, characterized by heightened whale accumulation and optimistic funding rates in the futures market, the current price action has yet to fully capture this positivity. A more forceful push is required for DOGE to transcend its current range and validate a bullish trajectory. Although the current price trends are gradually aligning with bullish sentiment from large holders and derivatives markets, a more conclusive move is essential to affirm the optimistic outlook.
