Dogecoin Whales Accumulate 4.5 Billion Tokens Amid 35% Price Drop

Dogecoin (DOGE) has recently formed a double bottom pattern, indicating a potential rebound in its price. As of July 7, DOGE was trading at $0.1700, slightly above its year-to-date low of $0.1467. This price point represents a 35% decline from its peak in May. Despite this drop, on-chain data reveals that whales have been actively accumulating DOGE, with holders of between 1 million and 10 million tokens increasing their holdings to 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 18.2 billion last year. This accumulation by whales is seen as a bullish sign, as these investors are often more experienced and have a longer-term perspective.

The positive funding rate, which has remained in the positive zone since July last year, further supports the bullish outlook. A positive funding rate indicates that investors anticipate the future price of DOGE to be higher than its current level. This sentiment is reinforced by the technical analysis of DOGE's price chart, which shows a double-bottom pattern. The double bottom is a bullish reversal pattern, and the neckline of this pattern is at $0.2596, the highest point in May. The Relative Strength Index (RSI) has also bounced back and is nearing the neutral point at 50, while the Moving Average Convergence Divergence (MACD) lines have made a bullish crossover and are pointing upward. These technical indicators suggest that DOGE is likely to maintain its bullish outlook as long as it remains above the double bottom at $0.1467. A rebound could see it rise and retest the resistance level at $0.2595. However, a drop below the support at $0.1467 would invalidate the bullish forecast.

Elon Musk, often referred to as the “Dogefather” for his role in popularizing DOGE, has recently launched The American Party. This political initiative has sparked renewed interest in DOGE, contributing to its recent price rally. The price of DOGE climbed from $0.163 to $0.171 within the last 24 hours, fueled by optimism surrounding Musk's new venture. The bullish double bottom formation on July 2 has further lifted DOGE's short-term outlook, pushing prices above $0.16 in a modest 2% rally. This technical pattern suggests a potential breakout, with the next resistance level at $0.17 now in sight. The strong technical setup, combined with renewed volume, indicates a positive momentum for DOGE.

On-chain data reveals significant whale activity, with heavy accumulation of DOGE ahead of the price surge. This suggests that large holders anticipated the momentum or possibly had advance knowledge of the upcoming movement. The current price of DOGE stands at $0.1697, and despite being a meme coin, it has maintained a devoted user base. This is partly due to prominent mentions by influential figures like Elon Musk, who have contributed to its popularity and market presence. The bullish sentiment is further reinforced by the formation of a double bottom, which has historically been a reliable indicator of a price reversal. Analysts predict that DOGE could potentially reach $0.47, although this is based on technical analysis and market conditions.

The price action of DOGE has been characterized by a series of double bottoms, which have provided strong support levels. The most recent double bottom formation has given DOGE a solid foundation, with the price holding above $0.15. This technical setup, combined with the renewed interest from whales, suggests that DOGE is poised for further gains. The next target for DOGE is $0.25, and holding above $0.177 would be a bullish signal for the cryptocurrency. The current price movement indicates that DOGE is in a consolidation phase, with the potential for a breakout to the upside. The strong technical setup, combined with the renewed interest from whales, suggests that DOGE is poised for further gains. The next target for DOGE is $0.25, and holding above $0.177 would be a bullish signal for the cryptocurrency. The current price movement indicates that DOGE is in a consolidation phase, with the potential for a breakout to the upside.