Dogecoin Whales Accumulate 140M Tokens Amid Bullish Pattern

Dogecoin's price has been at a critical resistance level, forming a bullish pattern that suggests a potential breakout. This pattern, known as a falling wedge, is characterized by two descending and converging trendlines. A bullish breakout typically occurs when these lines near their meeting point, and Dogecoin's price is currently at the upper side of this wedge, indicating a possible imminent breakout.

On-chain data compiled by Santiment reveals that Dogecoin whales have been accumulating the token over the past few months, despite the ongoing market crash. The data shows that the number of DOGE coins accumulated from January 2024 to the present has increased from 8.85 billion to 8.99 billion, or 140 million tokens. These tokens, valued at $21.84 million, suggest that whales are confident in the cryptocurrency's future prospects. Whale accumulation is often seen as a bullish catalyst for a cryptocurrency, as these investors are generally more sophisticated than retail traders.

Further on-chain data indicates that the Mean Dollar Invested Age (MDIA) has been rising over the past 365 days, reaching a high of 116 on Tuesday, up from 71 in December last year. The MDIA tracks the average age of every dollar invested in a coin, and a rising figure suggests that investors are holding their investments for longer, demonstrating confidence in the asset.

The ongoing whale accumulation is likely driven by several potential catalysts that could push the DOGE price higher over time. One significant catalyst is the approval of a spot Dogecoin ETF by the Securities and Exchange Commission (SEC). The odds of approval for DOGE ETFs by companies like 21Shares, Bitwise, and Grayscale have recently increased on Polymarket. This is because DOGE is a proof-of-work cryptocurrency similar to Bitcoin and Ethereum, making it a viable candidate for an ETF.

Another reason for the whale accumulation is the highly bullish technicals of Dogecoin. The daily chart shows that the coin has formed a falling wedge pattern, which is a bullish indicator. Additionally, the Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have formed a bullish divergence pattern. A breakout from this pattern would initially target the crucial resistance point at $0.2285, which is about 45% above the current level. The stop-loss for this trade would be at $0.1275, the lowest swing on April 7. If the price drops below this level, it would indicate further downside, with a potential target at the support level of $0.0930, the lowest swing in August last year, which would be 41% below the current point.