After a 5% drop, Dogecoin has started a promising technical rebound that could push it towards $0.30. A detailed analysis of whale movements and network fundamentals uncovers the underlying forces driving this rally.
Between August 24 and 25, an unknown whale transferred 900 million DOGE (approximately $200 million) to Binance wallets. This triggered significant volatility in the market and an 8% decrease in the open interest of futures contracts. This whale activity has certainly weighed on the short-term price.
However, on-chain data shows that despite retail selling, institutional demand remains strong. In fact, whales have accumulated an additional 680 million DOGE during August, highlighting the persistent interest from institutional investors in the meme token. Moreover, DOGE network fundamentals remain solid, with a hashrate exceeding 2.9 petahash per second, ensuring the security and robustness of the network.
From a technical perspective, he has been consolidating in a narrow range between $0.21 and $0.23, forming a “cup and handle” pattern on the charts. This type of formation, often seen as a bullish signal, suggests that the token could be about to break through the resistance at $0.23 and target higher levels around $0.25-0.30.
Although the overall momentum remains neutral to bearish, with an RSI near 40 and a bearish divergence on the MACD, maintaining support at $0.21 could be the necessary catalyst to propel DOGE toward new highs. Traders will be particularly attentive to the evolution of open interest in futures contracts, a key indicator for gauging speculative demand.
Despite macroeconomic headwinds, the coin has found the strength to bounce from its support at $0.21, initiating a technical rally that could lead it up to $0.30. Whale flows and underlying institutional demand, combined with a promising “cup and handle” pattern, suggest positive prospects for the meme token in the coming weeks. Seasoned investors would do well to closely monitor the evolution of this captivating asset.
Buy Dogecoin now on Bitget at approximately $0.21. An attractive entry point before a potential rebound, supported by expectations surrounding a DOGE ETF by year-end.
Here’s how to buy DOGE spot on Bitget:
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