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 increasing whale accumulation, this altcoin may be poised for a bullish breakout in the near future.
DOGE has seen a 112% increase in whale accumulation despite stagnant prices.
According to IntoTheBlock, DOGE has recorded a 112% increase in net flow 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 flow tracks the difference between the amount they buy and the amount they sell over a specific period.
When the net flow of large holders increases for an asset, more coins/tokens flow into the wallets of these large investors than flow out. This trend suggests that these holders are accumulating DOGE amid gloomy prices, signaling confidence in its future value.
Furthermore, while DOGE's price has not reacted much to improvements in 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 of this coin is currently at 0.0026%.
The funding rate is the periodic payment between traders in perpetual futures contracts to keep the contract price aligned with the spot price. When the funding rate is positive, demand for long positions will be higher. This means more traders are betting on DOGE's price rising.
Whale accumulation suggests a rise to $0.175
If this whale accumulation trend continues and positive sentiment increases, DOGE may be ready to break out to $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 bullish rally up to $0.206. However, if buying occurs in the pressure zone, the price of this altcoin could drop to retest the support level at $0.148.