Key Takeaways
- DOGE hovers around $0.070 with momentum indicators pointing to weakening downward pressure
- Large holders accumulated 180 million DOGE during the recent price decline
- Trader sentiment shows bullish tilt with long-to-short ratio reaching 1.27, highest in 30+ days
- Perpetual swap funding rates flipped positive on July 24 and continue trending upward
- Critical resistance zone at 50-day EMA ($0.074), with strong support established at $0.067
Dogecoin (DOGE) continues to hover near the $0.070 mark this Tuesday, maintaining its position above a crucial psychological threshold. Despite trading beneath significant moving averages, multiple blockchain metrics and futures market indicators suggest the meme coin may be positioning for a potential rebound.
Large cryptocurrency holders have demonstrated sustained buying interest throughout DOGE’s recent price weakness. Data from Santiment’s Supply Distribution analysis reveals that addresses holding between 10 million and 100 million DOGE have added approximately 180 million tokens to their positions since this past Saturday. Meanwhile, smaller addresses in the 100,000 to 1 million token bracket have reduced their holdings by roughly 10 million DOGE.
This pattern of accumulation by major market participants during price weakness suggests sustained confidence in DOGE’s value proposition at these price levels.
Cryptocurrency analyst Ash Crypto highlighted on social platforms that DOGE has reached unprecedented oversold territory, declining 90% from its peak and touching a 3-year minimum at $0.067. The analyst emphasized that the monthly Relative Strength Index has dropped to levels even more extreme than those witnessed during the 2022 bear market trough, prompting speculation about whether current prices represent a market bottom for the popular meme cryptocurrency.
Futures Market Indicators Signal Optimism
The derivatives landscape is painting an increasingly optimistic picture. According to CoinGlass analytics, DOGE’s long-to-short ratio climbed to 1.27 on Tuesday, marking the highest reading in more than 30 days. When this metric exceeds 1.0, it indicates more market participants are positioning for upward price movement rather than downward pressure.
DOGE’s perpetual futures funding rates crossed into positive territory on July 24 and have since risen to 0.0096% as of Tuesday’s trading session. When funding rates show positive values, it indicates long position holders are compensating short traders, demonstrating a predominantly bullish market stance.
In related developments, blockchain analytics reveal that whale addresses accumulated an additional 680 million DOGE tokens valued at approximately $48 million in anticipation of a potential Federal Reserve interest rate reduction. Such monetary policy shifts typically benefit speculative cryptocurrency assets including DOGE.
Chart Analysis and Price Levels
DOGE remains positioned beneath both the 50-day exponential moving average at $0.074 and the 100-day EMA at $0.081, maintaining an overall bearish short-term structure. Nevertheless, the daily chart’s RSI is displaying a bullish divergence pattern — while price established a lower low on August 1, the RSI formed a higher low, indicating diminishing bearish momentum.
The Awesome Oscillator is similarly printing higher lows even as price action remains compressed near recent bottoms, reinforcing the divergence narrative.
Important resistance barriers are located at $0.074, $0.076, and $0.081. For support, $0.070 provides immediate downside protection, with the annual low at $0.067 serving as the next major floor.
Market participants are focused on the $0.0710 threshold — a decisive close above this level could trigger additional upside momentum, whereas a breakdown beneath $0.070 might invite renewed bearish pressure.
The post Dogecoin (DOGE) Whales Accumulate $48M as Price Tests Critical Support Levels appeared first on Blockonomi.
Source: https://blockonomi.com/dogecoin-doge-whales-accumulate-48m-as-price-tests-critical-support-levels/
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