Will whale investors and spot investors push DOGE up?
Key Points
Whales have siphoned off 2 billion Dogecoins from the market, while the buying pressure from spot investors is minimal. The liquidity clusters on the chart indicate a possibility of bidirectional volatility for the asset.
Dogecoin [DOGE] is partially decoupled from Bitcoin [BTC] and Binance Coin [BNB], both of which set new all-time highs - indicating a lower likelihood of a DOGE rebound in the short term.
As of the time of publication, DOGE has fallen 3% in the past 24 hours, while other top 10 cryptocurrencies by market cap continue to rise.
Despite the asset rising 27% over the past month, it still struggles to recover previous highs, while BTC and BNB set new highs last week, and Ethereum [ETH] is also nearing its record.
Chart analysis shows that liquidity outflow is a major driving factor. Investors are selling Dogecoin (DOGE), while liquidity is flowing into Bitcoin (BTC) and Binance Coin (BNB).
For example, from May 10 to June 22, Dogecoin (DOGE) fell by 39%, confirming capital outflows. In contrast, BTC only dropped 3.72% and BNB fell by 7.06% during the same period.
Although all three assets subsequently rose, DOGE's rebound only brought it back to break-even, while BTC and BNB achieved stronger gains.
Liquidity inflow reaches high levels
In the past week, whale addresses known for large trades have accumulated 2 billion Dogecoins, worth $480 million. Such a surge in accumulation suggests tremendous potential for a Dogecoin price breakout.
According to net flow data from spot exchanges on CoinGlass, spot market investors have also joined in, adding another $32 million, bringing the total inflow to just over $500 million.
This persistent buying pressure may lead to one of the biggest fluctuations for Dogecoin in the coming trading days.
DOGE remains locked between key areas
According to CoinGlass data, the liquidation chart shows DOGE trading within two major clusters.
The cluster above may act as supply, and if tested, could trigger sell-offs. Conversely, the cluster below may act as demand, and if reached, could push prices higher.
Given the bullish momentum in the broader market and the massive accumulation by whales, DOGE is more likely to move higher.
However, before attempting to set new highs, entering the upper liquidity area may trigger significant sell-offs.
