Dogecoin whales are accumulating in large quantities – is this good news for traders?

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Dogecoin (DOGE) has recently shown breakout potential, with a surge in whale activity and the number of addresses as its main catalyst, but low trading volume and mixed technical signals remind the market to remain cautious.

Whale Accumulation and Address Activity

In the past 48 hours, Dogecoin whales have purchased more than 90 million DOGE, indicating growing confidence among large investors. In addition, the number of new addresses and active addresses of Dogecoin has increased by 102.4% and 111.32%, respectively, showing a significant increase in user engagement. The increase in zero balance addresses by 155.44% means that a large number of new users are trying to enter the Dogecoin ecosystem.

Price Action: Breakout or Consolidation?

As of now, the price of Dogecoin is around $0.3155, which is in a tight consolidation of a bullish pennant pattern. The key resistance level is $0.366, and a break above this level may lead the price to rebound to $0.50. However, low trading volume and mixed signals from technical indicators suggest that the market has not yet made a clear decision.

Technical indicators and market sentiment

The relative strength index (RSI) is currently at 40.76, indicating that the market is close to oversold conditions, but has not yet fully arrived. The directional movement index (DMI) shows a bearish dominance, with -DI at 31.91, above +DI at 15.28, suggesting that the current trend is bearish, but a catalyst is still needed to change the situation.

Liquidation data: signs of a shift in market trends

Recent liquidation data shows that the liquidation amount of short positions is $257,420, showing that the bears are losing control. This may provide an opportunity for a bullish reversal in the future, but sustained buying interest remains key.

Conclusion

Dogecoin's whale accumulation and address activity show the possibility of a potential breakout, but the uncertainty of the current low trading volume and technical signals still limits market movements. If Dogecoin successfully breaks through $0.366, the next stage of the rise may be initiated. At present, market sentiment tends to be cautiously optimistic.

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