Dogecoin Whales Accumulate 800M Coins, Sparking 7.5% Price Surge Potential

Dogecoin, the largest memecoin, has shown signs of breaking its prolonged descending trendline after being in a downtrend for over 90 days. This shift in sentiment is supported by increased whale activity and growing trader confidence. Over the past few days, whales have accumulated over 800 million DOGE coins, indicating a strong interest in the memecoin. This accumulation has raised questions among crypto enthusiasts about whether it is the right time to buy DOGE.

On-chain metrics further support the bullish outlook for Dogecoin. Data from an on-chain analytics firm revealed that exchanges have witnessed an outflow of 49.89 million DOGE coins over the past four trading days. This substantial outflow suggests potential accumulation and could trigger buying pressure, leading to a further upside rally. Additionally, derivatives data showed growing conviction among bullish traders, with DOGE’s Long/Short Ratio standing at 1.17. This means that 54% of top traders are going long on the memecoin, while 45.99% are short.

Technical analysis confirms that DOGE reached its trendline resistance for the fifth time and appeared to be breaking out. Historically, this level has acted as a sell-off zone, but the current market sentiment and historical patterns suggest that this level is now a make-or-break point for the memecoin. If the memecoin’s price continues to rise and breaches the prolonged descending trendline, it could reverse DOGE’s bearish trend, with the price potentially soaring by 7.5% to reach the next resistance level at the $0.17 mark. However, if DOGE fails to break above the trendline, the price could decline toward the key support area.

As of the 17th of April, the memecoin was trading below the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating that the asset is in a bearish trend with sellers currently dominating. Despite this, the growing interest from whales and the bullish sentiment among traders suggest that Dogecoin may be on the verge of a significant price movement. The combination of on-chain metrics and derivatives data indicates that bulls are currently dominating the asset and seem to be supporting DOGE in breaching its prolonged trendline.