The leading memecoin, Dogecoin, has seen a significant increase in interest from large investors in the past week, despite its relatively stable price action.
DOGE has been trading within a narrow range, with little strength to break in either direction. With increased accumulation by large investors, the altcoin may be on the verge of an upward breakout soon.
According to IntoTheBlock, DOGE recorded a 112% increase in net flow from large investors in the past seven days.
Net Flow of Large Investors. Source: IntoTheBlock
Large investors are addresses that hold more than 0.1% of the circulating supply of an asset. Their net flow tracks the difference between the coins they buy and the amount they sell over a specific period.
When the net flow of large investors increases for an asset, more coins/tokens enter the wallets of these investors than exit. This trend indicates that these investors are accumulating DOGE amid weak price performance, signaling confidence in its future value.
Furthermore, while the price of DOGE has remained largely insensitive to improvements in the broader market sentiment, futures traders continue to show conviction. This is reflected in sustained demand for long positions. According to Coinglass, the current funding rate for the coin is at 0.0026%.
DOGE Funding Rate. Source: Coinglass
The funding rate is a periodic payment between traders in perpetual futures contracts to keep the contract price aligned with the spot price. When the funding rate is positive, there is greater demand for long positions. This means that more traders are betting on the price of DOGE rising.
Whale accumulation suggests a rise to $0.175
If this trend of accumulation by large investors continues and positive sentiment grows, DOGE may be on the verge of a breakout towards the $0.175 level. This movement would mark a significant reversal from its recent consolidation phase.
DOGE Price Analysis. Source: TradingView
A breakout above this key price barrier could pave the way for a rise towards $0.206. However, if buying pressure decreases, the price of the altcoin may fall to test support again at $0.148.
The article Why Dogecoin (DOGE) Might Be Ready to Take Off? was first seen on BeInCrypto Brazil.
