Dogecoin (DOGE) has recently been heavily accumulated by whales with 2 billion coins, but market spot buying pressure is relatively low, and liquidity distribution suggests that prices may experience two-way fluctuations.
DOGE's trend diverges from BTC and BNB, facing greater challenges for short-term rebounds:
Dogecoin (DOGE) has recently diverged from Bitcoin (BTC) and Binance Coin (BNB).
Although DOGE has risen 27% over the past month, it has dropped 3% in the last 24 hours, failing to follow the rise of other top ten cryptocurrencies by market cap. In contrast, Bitcoin and Binance Coin reached new highs, and Ethereum is also close to its historical record. The main reason for DOGE's weak performance is liquidity outflow.
Investors start selling DOGE, shifting to BTC and BNB. From May 10 to June 22, DOGE dropped 39%, while BTC and BNB only fell by 3.72% and 7.06% respectively. Although all three rebounded later, DOGE's recovery was far inferior to that of BTC and BNB.
Whale accumulation drives increased liquidity:
In the past week, whale addresses accumulated 2 billion dogecoins, worth about $480 million, indicating potential for a price breakout. According to CoinGlass data, net inflow in spot exchanges increased to $32 million, with total inflow slightly exceeding $500 million. Continuous buying pressure may lead to fluctuations in DOGE.
DOGE price oscillates in a key range:
CoinGlass's liquidation chart shows that DOGE is currently in two major liquidity cluster ranges. The upper cluster may become a supply zone, and touching it could trigger a sell-off; the lower cluster may become a demand zone, which could push prices up if it drops to that area.
Summary: With the market generally bullish and whales continuing to accumulate, DOGE has significant upside potential. However, if prices approach the upper liquidity area, it may trigger large sell-offs, and breaking new highs in the short term still faces certain challenges.
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