Top meme coin Dogecoin has seen a notable spike in interest from large holders over the past week despite its relatively subdued price action.
DOGE has been trading within a narrow range, with little momentum to break out in either direction. With climbing whale accumulation, the altcoin might be poised for an upward breakout in the near term.
DOGE Sees 112% Spike in Whale Accumulation Despite Price Stagnation
According to IntoTheBlock, DOGE has noted a 112% uptick in its large holders’ netflow in the past seven days.
Large holders are whale addresses that hold more than 0.1% of an asset’s circulating supply. Their netflow tracks the difference between the coins they buy and the amount they sell over a specific period.
When large holders’ netflow increases for an asset, more coins/tokens flow into the wallets these major investors hold than are flowing out. This trend indicates that these holders are accumulating DOGE amid a lackluster price performance, signaling confidence in its future value.
Furthermore, while DOGE’s price has remained largely unresponsive to improvements in the broader market’s sentiment, futures traders continue to show conviction. This is reflected in the sustained demand for long positions. Per Coinglass, the coin’s funding rate currently sits at 0.0026%.
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 a higher demand for long positions. This means that more traders are betting on DOGE’s price going up.
Whale Accumulation Hints at $0.175 Surge
If this trend of whale accumulation continues and positive sentiment grows, DOGE could be poised for a breakout toward the $0.175 level. This move would mark a significant reversal from its recent consolidation phase.
A break above this key price barrier could open the door for a rally toward $0.206.However, if buying pressure craters, the altcoin’s price could fall to retest support at $0.148.
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