Dogecoin Drops 2.356% Amid Political Uncertainty and Whale Accumulation

Dogecoin's latest price was $0.1679, down 2.356% in the last 24 hours. Dogecoin is currently facing significant resistance levels, with key zones identified at $0.18, $0.21, and $0.36. These levels are crucial as they represent areas where large volumes of Dogecoin have been moved in the past, indicating potential sell zones. Analyst Ali Martinez reported that around 13.4 billion DOGE were last moved at $0.18, forming the second-largest holder cluster after the $0.0739 support level. At $0.21, roughly 10.85 billion DOGE changed hands, and at $0.36, 5.73 billion DOGE were involved, suggesting that many holders may exit their positions once prices reach these break-even points, potentially putting downward pressure on DOGE’s trajectory.

Elon Musk’s recent political move has added uncertainty to the crypto policy landscape. Musk announced the formation of the America Party following a July 4th poll, with nearly two-thirds of 1.24 million voters backing the idea. This move deepens Musk’s feud with Donald Trump, who criticized Musk’s DOGE-based debt reduction initiative. Trump warned that Musk’s party could split Republican votes in 2026, raising concerns within conservative circles. Musk’s political involvement could shift market sentiment, as he is often seen as the “Dogefather” for popularizing Dogecoin in 2019 and 2020, helping it become a multi-billion-dollar asset.

Whales have been actively accumulating Dogecoin, with a 112% weekly surge in whale accumulation after a month of flat price action and low volatility. This renewed interest from large holders suggests growing bullishness for the near-term Dogecoin outlook. According to IntoTheBlock data, netflows of large Dogecoin holders spiked 111.97% over the past week, pointing to renewed interest from smart money players. The “Liberation Day” tariff pause extension to August 1 and expectations of rate cuts starting as early as July have contributed to a risk-on environment, further fueling speculative interest in Dogecoin.

Derivative traders are increasingly active in Dogecoin price moves, with open interest maintaining levels above $2 billion for the first time since June, up 21% since the month began. A positive funding rate at 0.21% shows sustained demand for long positions, indicating that traders are betting on a price increase. The resurgence of derivatives market interest and smart money comes as DOGE eyes confirmation of a breakout from a four-year cup-and-handle pattern. If this structure holds, the historical support could serve as a launchpad for the pattern’s technical target of $0.75—a potential 345% move from current levels. Momentum indicators, such as the RSI and MACD, support this outlook, suggesting a long-term uptrend may be taking root.

Dogecoin’s price has held steady after Elon Musk launched The American Party, which he hopes will become the third major political party in the U.S. Musk formed the party after falling out with Donald Trump, who signed a law that Musk believes will lead to more government spending. The so-called Big Beautiful Bill also ends a popular electric vehicle tax credit, which Musk criticized as wasteful. Musk’s political involvement could shift market sentiment, as he is often seen as the “Dogefather” for popularizing Dogecoin in 2019 and 2020, helping it become a multi-billion-dollar asset.

Dogecoin’s price has formed a double bottom pattern, pointing to an eventual rebound as whale accumulation continues. On-chain data shows that whales have continued adding to their positions in the past few months. Holders with between 1 million and 10 million tokens now hold over 10.5 billion, up from 10.32 billion in February. Similarly, those with between 10 million and 100 million coins now hold over 24.8 billion, up from last year’s low of 18.2 billion. Increasing whale accumulation is a bullish sign because these investors are often more experienced than retail participants. Dogecoin’s funding rate has remained in the positive zone since July last year, indicating that investors anticipate the future price will be higher than it is today.

Dogecoin is on the verge of a significant breakout as it approaches the critical $0.48 resistance level within a long-standing ascending triangle pattern. The cryptocurrency’s consistent higher lows and tightening price range indicate mounting bullish momentum, suggesting a potential surge in value. According to COINOTAG, Dogecoin’s repeated tests of the $0.48 ceiling and strong accumulation phases highlight a growing likelihood of a decisive upward move. Dogecoin nears a pivotal breakout at $0.48, driven by a multi-year ascending triangle and strong accumulation, signaling robust bullish potential in 2024.

Dogecoin has garnered significant attention due to substantial whale accumulation observed recently, signaling increased activity from large-scale holders. This heightened accumulation suggests a notable shift in whale behavior following a period of relative stability, potentially reflecting growing confidence within this segment of the investor base. Network metrics indicate a significant surge in whale transactions, specifically a 112% weekly increase in whale accumulation, contributing to the observed momentum surrounding the cryptocurrency.

A key factor influencing recent Dogecoin discourse involves Elon Musk's launch of the America Party. Speculation surrounding potential implications of this political movement for Dogecoin has become a prominent topic within the community. While concrete connections remain undefined by official sources, the association stemming from Musk's historical support for Dogecoin has catalyzed discussion, positioning the event as a notable external development impacting the asset's perception.

Beyond political catalysts, Dogecoin continues to demonstrate underlying strength through whale activities and technical positioning. Analysis points towards the cryptocurrency successfully maintaining key support levels, a crucial factor for establishing a solid foundation for future market movements. Concurrently, increased network activity, particularly the sustained elevated level of whale participation identified recently, contributes to building potential for significant breakout attempts as bullish sentiment among major holders appears to strengthen.