Whales of Dogecoin stir up the market – Will DOGE price reach new highs?

After more than 90 days of continuous plummet, Dogecoin (DOGE) – the top memecoin in the market – is now signaling a breakout above the downward trend that has weighed heavily for a long time.

This trend line has previously triggered strong sell-off waves multiple times, but the current context is different. Increased activity from "whales" and a gradually returning optimistic sentiment are breathing new life into the market, opening up hope for a short-term turnaround.

Dogecoin whales accumulating

In recent days, Dogecoin has been attracting special attention from "whales" – a term that refers to investors who hold large amounts of assets. According to an expert in the field of cryptocurrency, large-scale accumulation of DOGE is taking place vigorously, signaling a new wave of accumulation.

On the platform X (formerly known as Twitter), this expert revealed that whales have quietly accumulated over 800 million DOGE – a figure large enough to make the cryptocurrency community unable to ignore. The information immediately caused a stir, raising the question: Is this the ideal time to buy into Dogecoin?

As of the time of writing, DOGE is trading around $0.16, up 1.25% in the past 24 hours. The trading volume has also recorded an increase of over 5%, indicating that capital is starting to flow into this memecoin significantly.

Technical Analysis: Dogecoin Faces a Decisive Moment

The technical chart shows that Dogecoin has just reached the long-term resistance line for the fifth time – an important technical threshold that has repeatedly caused price rejections in the past. However, the signal this time suggests that the situation may be changing.

If DOGE can decisively break through this resistance level, the downward trend that has persisted for a while may officially come to an end, opening up opportunities for the price to advance to the $0.17 range – equivalent to an increase of about 7.5%.

However, the reversal scenario still needs to be considered. In the event that DOGE cannot break through resistance and selling pressure dominates, a deep pullback to the support zone below is entirely possible.

Source: TradingViewAs of April 17, DOGE has not yet been able to surpass the 200-day Exponential Moving Average (EMA) on the daily chart – a factor indicating that selling pressure still prevails and the downward trend has not truly been broken.

Capital outflow from the exchange: Nearly 50 million DOGE

The positive outlook for DOGE is receiving strong support from on-chain signals. According to data from the analytics platform Coinglass, in just the last 4 trading sessions, exchanges have recorded a net outflow of up to 49.89 million DOGE. This trend indicates that an accumulation process is quietly taking place – a key factor that could create significant buying pressure, thereby reinforcing the current upward trend of the market.

Source: CoinGlassAlongside on-chain indicators, the derivatives market is also clearly leaning towards the bulls. Specifically, the Long/Short ratio of DOGE currently stands at 1.17, indicating that 54% of top traders are betting on an upward trend, while only 45.99% maintain a Short position.

Source: CoinGlassWhen combining technical data with on-chain indicators, it can be seen that buying pressure is clearly dominant – an important factor supporting DOGE in its journey to conquer the downward trend.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions

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