Dogecoin’s Whale Accumulation and On-Chain Activity Suggest Potential Breakout Toward $0.20

• Dogecoin’s recent rally has caught the attention of investors as the $0.20 mark looms, buoyed by increased whale activity and bullish sentiment.

• Notably, the memecoin has attracted over 80 million DOGE in a single day, indicating significant accumulation by large holders amidst a market rebound.

• “Whale accumulation and favorable funding rates depict a healthy sentiment in the Dogecoin market,” stated a recent analyst report from COINOTAG.

This article explores Dogecoin’s resurgence, highlighting key metrics and trends driving its potential breakout towards $0.20, with insights on whale behavior and market sentiment.

DOGE reclaims demand zone – Can bulls sustain momentum?

After bottoming out within the critical demand zone between $0.14109 and $0.15200, DOGE has shown remarkable strength in its rebound. The chart illustrates a clear higher-low structure forming, fueled by whale accumulation amid the consolidation phase.

The immediate resistance level appears to be around $0.20139 – a crucial threshold that previously acted as a reversal point during earlier rallies. Should this level break, the next significant target would sit at $0.24388, aligning with expected peaks in late 2024.

Thus, DOGE’s ability to maintain momentum above $0.18 is vital to sustaining bullish pressure, as any weakness may lead to a retest of the demand zone.

Source: TradingView

Funding rates reflect healthy trader positioning

In the derivatives market, Dogecoin’s funding rates across major exchanges, notably Binance, are currently set at 0.009161%. This slight upward trend signifies that long traders are willing to pay a premium to retain their positions, indicating mild bullish sentiment.

Conversely, the absence of significantly elevated rates suggests that traders are not excessively overleveraged, which minimizes the risk of sudden market corrections. Consequently, DOGE is in a balanced state of cautious optimism, fostering gradual upward movement without raising overheating risks.

Source: Santiment

DOGE’s on-chain activity sees signs of revival

Current on-chain activity shows promising signs of revival for DOGE. As of this writing, the network recorded 68,324 daily active addresses and 40,514 transactions. While these figures are below the explosive highs seen in late 2024, they signal a gradual re-engagement among users.

Increased activity often precedes heightened speculative interest and new capital influx—both critical components for sustained price movements. Should this trajectory continue, it could provide DOGE with the fuel necessary to break through its resistance level.

Source: Santiment

Stock-to-flow ratio spikes as perceived scarcity increases

Moreover, DOGE’s Stock-to-Flow ratio surged to 128.94, marking its highest reading in several months. This increase suggests that market participants are beginning to view DOGE as a scarce asset, which might impose upward pressure on long-term valuations.

However, it’s crucial to interpret this signal in context, as evaluating it in isolation may lead to misjudgments among investors.

Source: Santiment

Conclusion

In summary, strong whale accumulation, a bounce from essential technical levels, favorable funding conditions, and increasing on-chain activity converge to create a potent case for a breakout. While short-term volatility is still a factor, these indicators lay a solid foundation for a potential push towards the $0.20–$0.24 range. Consequently, if bulls continue to exert pressure and retail interest rises, DOGE may be poised to reclaim a more robust bullish trend.