Is Dogecoin about to explode? Recent data suggests a possible breakout.
Whale Accumulation
Big Dogecoin investors (whales) have been quietly buying up DOGE over the past month. Those holding between 100 million and 1 billion DOGE increased their holdings significantly, adding about 1.4 billion DOGE – roughly $300 million worth – to their wallets. This happened even as the price was already rising.
Network Activity is Heating Up
It’s not just whales; overall network activity is booming. The number of daily active addresses and transaction volume have surged. A particularly interesting sign: a huge increase in transactions worth over $1 million, indicating significant activity from large players, not just small retail investors.
Price Facing a Key Hurdle
Despite the positive on-chain signals, Dogecoin’s price is facing resistance. It’s currently hovering around $0.22, struggling to break through a key resistance level between $0.24 and $0.26. This level acted as support before, but now it’s proving to be a tough ceiling.
The Crucial Question
If Dogecoin can decisively break above $0.26, it could trigger a rally towards $0.30. However, failure to break through this resistance could send the price back down towards $0.17.
The Bottom Line
The combination of whale accumulation, increased network activity, and large transactions suggests strong underlying demand for Dogecoin. Whether this demand is enough to overcome the price resistance remains to be seen. The whales have placed their bets; now it’s up to the price to follow. At the time of writing, DOGE is trading at $0.22.
