Dogecoin is ready to soar - Whale signals breakout

Dogecoin ( DOGE ) has seen a significant increase in interest from large holders over the past week despite its price action being relatively stagnant.

DOGE has been trading in a narrow range, with little momentum to move in either direction. However, with the accumulation of whales increasing, this altcoin may be poised for a bullish breakout soon.

DOGE witnesses a 112% increase in whale accumulation despite stagnant prices

According to IntoTheBlock, DOGE has recorded a 112% increase in the net inflow of large holders over the past seven days.

Net cash flow of large holders | Source: IntoTheBlockLarge holders are whale addresses that hold more than 0.1% of the circulating supply of an asset. Their net cash flow tracks the difference between the amount they buy and sell over a specific period.

When this indicator rises, the token will tend to flow into the wallets held by these large investors, indicating that holders are accumulating DOGE amid a bleak price environment, signaling confidence in the future value of the memecoin.

Moreover, while the price of DOGE has not reacted much to the improvements in the overall sentiment of the space, traders in the futures market continue to show confidence. This is reflected in the demand to maintain Long positions. According to Coinglass, the funding rate of this memecoin is currently at 0.0026%.

Funding rate of DOGE | Source: CoinglassFunding rate is a periodic payment from traders in perpetual futures contracts to keep the contract price aligned with the spot price. When the funding rate is positive, demand for Long positions will be higher, meaning more traders are betting that the price of DOGE will rise.

Accumulation of whales and potential to exceed $0.175

If the accumulation trend of whales continues and positive sentiment increases, DOGE may be ready to breakout with a target of surpassing $0.175, reversing from the recent consolidation phase.

DOGE Price Analysis | Source: TradingViewBreaking through this important barrier could open the door for a growth surge towards $0.206. However, if selling pressure returns, the price of the altcoin could drop to retest the support level at $0.148.

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