Why Dogecoin’s $56M whale accumulation might NOT help DOGE’s rally

• Massive rise in whale accumulation allowed DOGE to turn bullish again
• If things fall in place, DOGE might retest its resistance at $0.42

The crypto market’s bullish condition has allowed most cryptos to pump their prices on the charts. Dogecoin [DOGE] was no exception. Not only did investors show confidence in the memecoin, but big-pocketed players also scooped up a significant amount of DOGE. 

Dogecoin whales show confidence

Over the past week, DOGE’s performance has been impeccable, with its value skyrocketing by more than 88%. This allowed the memecoin to climb above the $0.42-mark for a short duration. However, it soon noted a slight pullback after touching the $0.43-level.

As DOGE’s price started to drop, whales took the opportunity to stockpile the memecoin. Ali, a popular crypto analyst, shared a tweet pointing out this development.

According to the same, DOGE whales bought 140 million DOGE in the last 24 hours – Worth around $56 million. This massive accumulation highlighted whales’ confidence in the memecoin.

The hike in whale accumulation was also supplemented by a rise in the number of large holders. IntoTheBlock’s data revealed that the number of addresses holding DOGE worth $10k-$100k and $100k-$1M increased by over 140% and 199%, respectively. Moreover, DOGE addresses holding more than $10M also climbed by 155% in the last 30 days. 

Source: IntoTheBlock

Is trouble ahead?

The latest phase of whale accumulation helped DOGE turn its daily chart green again. However, this push from large players might not be enough for DOGE to sustain its uptrend.

DOGE’s trading volume declined sharply over the last few days. A decline in the metric usually means that the chances of the prevailing price trend changing are high.

Here, it is also interesting to note that despite the latest price hike, Dogecoin’s MVRV ratio dipped. At press time, the metric had a value of 27.9%. When the MVRV ratio falls, it means that short-term holders can make money while long-term holders are typically losing money.

Source: Santiment

Apart from this, Coinglass’ data also revealed a concerning metric.

Dogecoin’s long/short ratio dropped over the last few hours. This meant that there were more short positions in the market than long positions – Hinting at a price decline. If a trend reversal happens, then DOGE might first witness a slight pullback to $0.371. 

Read Dogecoin’s [DOGE] Price Prediction 2024-2025 

However, in case of a sustained price hike, then the memecoin’s price might touch the $0.42 resistance again. As reported previously by AMBCrypto, a breakout above that resistance could initiate a double-digit price rally.

Source: Coinglass