Dogecoin is back in the spotlight as whales accumulate 220 million DOGE, reinforcing a potential price rebound from a historically critical support level. The surge in large-scale buying activity aligns with technical signals and positive on-chain indicators, suggesting that a shift in market momentum may already be underway.
Whales Accumulate as DOGE Tests Long-Term Support
Between March 11 and March 25, wallets holding between 1 million and 10 million DOGE significantly increased their holdings. This trend and a net inflow representing 0.17% of Dogecoin’s total circulating supply indicate growing confidence among mid- to large-scale investors.
During this period, DOGE’s price rose from $0.15 to $0.19, reflecting a 26% increase. At the time of writing, Dogecoin trades near $0.1643, hovering just above a support zone that dates back to 2018. Historically, this level has acted as a springboard for price recoveries, which explains the strategic timing of recent whale moves.
On-Chain Activity Confirms Institutional Interest
The sharp uptick in activity from 1M–10M DOGE wallets signals accumulation and suggests a potential shift in institutional sentiment. These wallet tiers are often associated with more strategic investors than short-term retail traders.
Moreover, analysts note that accumulation at these levels tends to precede bullish momentum. Given that this buying spree coincided with a price uptrend, it’s possible that whales are positioning for a longer-term breakout—especially if DOGE continues to hold above its critical support.
Positive Funding Rates Reflect Market Optimism
Another factor adding to the bullish case is the recent flip in funding rates. Dogecoin’s funding rates have turned positive, indicating market sentiment may be recovering. Historically, positive funding rates indicate increased demand for long positions, often aligning with bullish price action.
In contrast, periods with negative funding have frequently accompanied market declines. Therefore, the current sentiment among derivatives traders could reinforce the recent accumulation by large holders.
Related article: Dogecoin Rally on the Horizon? Analysts Predict a Surge to $0.60 as Whales Accumulate
What the Charts Say: High Reward, High Risk
From a technical standpoint, Dogecoin is at a crossroads. If it successfully defends the $0.16 support zone, it could aim for a rally toward its historical channel midpoint of around $0.65, representing a potential upside of 270%.
However, failure to hold this level could trigger significant downside pressure. Analysts warn that a breakdown below support could result in a 26% to 44% drop, mirroring previous cycles when DOGE failed to maintain structural support.
Final Thoughts: Strategic Accumulation or Speculative Gamble?
While price action remains uncertain, the recent whale activity, positive on-chain data, and improving funding rates offer a compelling case for cautious optimism. Traders and investors should closely monitor support levels and market sentiment to anticipate the next big move.
All eyes remain on Dogecoin’s ability to maintain its footing and whether history will repeat itself with another explosive rally.
