Dogecoin’s price remains stable around $0.1743 despite ongoing whale accumulation. On-chain data shows that large holders are increasing their positions, anticipating a possible Spot DOGE ETF approval by the SEC. However, shifting investor interest towards new memecoins and Elon Musk’s reduced involvement may be dampening sentiment around the coin. Dogecoin’s technical patterns indicate potential bearish movement unless it surpasses certain price levels.
Dogecoin’s recent price stagnation is raising eyebrows, with current trading at $0.1743—a level it has hovered around for days now. This marks a roughly 36% increase from its year’s lowest point. Meanwhile, on-chain data from Santiment suggests that major investors, or “whales,” are actively accumulating the cryptocurrency, which may signal some upcoming activity in the market despite the flat price performance.
Observing the accumulation trend, holders with between 1 million and 10 million DOGE have ramped up their positions from 10.3 billion coins in March to 10.5 billion currently—an increase of 200 million. Notably, whales with even larger holdings, between 100 million and 1 billion coins, have also boosted their stakes, rising from 23.4 billion to 25.52 billion. This kind of accumulation, especially during a bear market, is generally seen as a bullish signal.
There’s speculation that these whales are betting on a potential approval of a Spot DOGE ETF by the SEC, which seems increasingly plausible given that Dogecoin operates as a proof-of-work cryptocurrency and is unlikely to be classified as a security by the agency. Yet, despite the whale activity, Dogecoin’s price has not moved as one might expect.
Two factors are likely contributing to the price stagnation. First, traditional memecoins are experiencing a shift as investors rotate their interests towards newer tokens within the Solana ecosystem. Specifically, coins like Fartcoin and Popcat have gained traction, inadvertently sidelining Dogecoin’s appeal in the market.
Secondly, hints from Elon Musk regarding a reduction in his involvement with the Department of Government Efficiency amidst Tesla’s stock decline could also be dampening investor sentiment. Though Musk’s exit from the DOGE project might not directly impact the coin’s fundamentals, it could create a wave of uncertainty among investors who look to him as a market influencer.
From a technical perspective, Dogecoin’s recent chart patterns are quite telling. The daily prices have formed a symmetrical triangle pattern that’s like a waiting game, with the lines about to converge. This formation follows a significant price drop from $0.4815 last December.
Currently, there’s a risk of a bearish pennant forming, signalling that the price could soon break down to support levels as low as $0.10—a potential decline of around 43% from the present trading price. However, this bearish sentiment could change if the price breaks above the crucial 50% retracement level of $0.2796, providing a glimmer of hope for bullish traders.
For a bit of history, Dogecoin was developed back in December 2013 by software engineers Billy Markus and Jackson Palmer, allegedly inspired by the famous “Doge” meme featuring a Shiba Inu. It’s remarkable how the coin, built on Litecoin’s code, has gained mainstream attention, much of it due to endorsements from high-profile figures like Elon Musk.
