Dogecoin Climbs 5% as Whale Accumulation Surges 112%

Dogecoin (DOGE) has recently exhibited signs of a potential breakout, with the cryptocurrency initiating a fresh increase above the $0.1680 zone against the US Dollar. Currently, DOGE is consolidating and may aim for a move above $0.1720. This consolidation phase follows a period of renewed strength, with technical indicators suggesting a possible bullish trend.

The recent surge in whale accumulation, which has increased by 112% over the past week, indicates a renewed confidence among major investors. This significant rise in interest from large holders suggests that DOGE is back on the radar of major investors, despite its modest price gains. The netflow of DOGE, which measures the movement of coins between wallets, has also surged, reflecting a sharp reversal in accumulation trends.

In the derivatives market, funding rates have remained positive, with DOGE’s OI-Weighted Funding Rate hovering near 0.0086% and peaking around 0.01% on the 6th of July. This positive funding rate indicates that traders are betting on a price increase, despite DOGE’s relatively muted response to the broader crypto rally. The derivatives market is leaning heavily toward upside expectations, suggesting that traders are still optimistic about DOGE’s potential for a breakout.

Technical indicators such as the Relative Strength Index (RSI) and On-Balance Volume (OBV) provide further insights into DOGE’s price action. The RSI is at 51.04, slightly above neutral territory, suggesting mild bullish momentum but no clear trend dominance. The OBV has edged up to 46.3 billion, hinting at improving but cautious buying interest. While recent green candles show price resilience, DOGE still needs a decisive move above the $0.18 resistance zone to confirm a bullish breakout.

The potential for a bullish breakout is further supported by technical and on-chain indicators. If DOGE can overcome resistance levels at $0.18, $0.21, and beyond, it could signal a stronger upward trend. However, the cryptocurrency is currently trapped in a narrow channel, which could suddenly turn volatile. The tight price compression that DOGE is experiencing could lead to a breakout or breakdown, depending on market sentiment and investor behavior.

In summary, Dogecoin is showing early signs of recovery, with its price climbing 5% to $0.172 at press time. The renewed strength in whale accumulation and positive funding rates in the derivatives market suggest that bulls are positioning themselves for a potential breakout. However, DOGE still needs a stronger push to confirm a bullish trend and overcome key resistance levels. The upcoming price action will be crucial in determining whether DOGE can unleash the next surge and achieve a breakout.