What to know:
- Whales bought 1.7B DOGE worth $119M.
- DOGE trades below key moving averages with weak RSI.
- Open interest stays above $1B despite price weakness
Dogecoin is back in the spotlight as big investors accumulated an additional 1.7 billion DOGE, even as the meme coin’s price remains below its key technical levels.
At the time of writing, Dogecoin price is trading at $0.06905 and is down 1.41% in the last 24 hours. The whale accumulation contrasts with the bearish price trend, suggesting that on-chain sentiment is stronger than the current technical outlook.
Also Read: Dogecoin Price $0.80 Breakout as Rising Network Activity Fuels Bullish Outlook
Why Are Dogecoin Whales Buying During the Price Decline?
X crypto commentator @dogegod recently reported that “Dogecoin whales bought another 1.7 billion $DOGE in a single day.”
The purchases were equivalent to approximately $119 million. Significant buying during price slumps usually suggests that whales believe in the long-term value of the asset despite retail investors’ cautiousness.
Although one day of buying does not necessarily imply that the trend will reverse, it suggests some large investors are positioning ahead of a potential recovery.
What Does the Dogecoin Price Chart Show?
According to the TradingView daily chart, DOGE remains in a bearish trend as it trades below both the 50-day moving average at $0.07388 and the 200-day moving average at $0.09294.
Meanwhile, the Relative Strength Index (RSI) is near 39, indicating weak momentum but not an oversold market, as it remains above the 30 threshold. For bullish momentum to strengthen, buyers need to reclaim the 50-day moving average.
Also Read: Dogecoin Price Eyes $0.45 as Franklin Templeton ETF Filing Boosts Momentum
How Do Dogecoin Derivatives Reflect Market Sentiment?
According to CoinGlass, Dogecoin open interest remains above $1 billion, indicating that traders continue to maintain leveraged positions despite the recent price weakness.
Meanwhile, derivatives trading volume has eased from the elevated levels seen in late July, suggesting traders are waiting for a stronger catalyst before increasing their exposure.
Liquidation data also indicates that both long and short positions have faced relatively balanced liquidations, highlighting the market’s uncertainty rather than a clear directional trend.
What Should Dogecoin Traders Watch Next?
The increase in whale accumulation is a bullish on-chain signal, but it still requires confirmation from price action.
A move above $0.0739 would strengthen the short-term bullish outlook, while a break below the $0.069 support level could invite additional selling pressure.
For now, strong whale accumulation alongside weak technical indicators presents a key market setup that traders will be watching closely.
Also Read: Dogecoin Price Eyes $0.15 After Holding Crucial $0.07 Support
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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