Dogecoin whales accumulate $48 million as price tests key support at $0.067

Whale accumulation and shifting holder sentiment

Data from blockchain analytics firm Santiment showed that wallets holding between 10 million and 100 million DOGE accumulated 180 million tokens over the recent downturn that began this past Saturday. In contrast, smaller holders with balances between 100,000 and 1 million DOGE trimmed their positions by 10 million tokens over the same period.

This accumulation pattern among major investors signaled persistent confidence in Dogecoin’s longer-term prospects, even as the price lingered at multi-year lows. Santiment monitors cryptocurrency market data on-chain and provides insight into token holder behavior for traders and analysts.

Analyst Ash Crypto commented that DOGE had entered its most oversold state on record, dropping 90% from its all time high and recently touching a three-year low at $0.067. The analyst stated that this monthly Relative Strength Index (RSI) value is now below the level recorded at the 2022 market bottom, fueling speculation that the current area could represent a cycle low.

DOGE has declined 90% from its peak and reached a three-year minimum at $0.067, with the monthly RSI showing deeper oversold conditions than those seen during 2022’s market bottom.

Futures market activity and bullish funding rates

Trading data from CoinGlass revealed a strong tilt toward long positions in Dogecoin derivatives. The long-to-short ratio for DOGE perpetual futures climbed to 1.27, the highest level in more than a month, suggesting more traders expect upward price movement rather than further downside.

DOGE’s perpetual futures funding rate flipped positive on July 24, and by Tuesday had reached 0.0096%. When funding rates are positive, traders holding long positions pay a fee to those holding short positions, often considered a sign of prevailing bullish sentiment in the market.

Blockchain metrics also indicate that whale wallets continued to accumulate, purchasing an additional 680 million DOGE valued at $48 million in anticipation of possible Federal Reserve interest rate cuts. Historically, such monetary policy changes have fueled rallies in speculative digital assets.

Mini dictionary: Perpetual futures funding rate — A mechanism used in perpetual futures contracts to keep the contract price in line with the spot price. It reflects the cost of holding a position and is paid between long and short traders at regular intervals.

Key technical levels for Dogecoin

Technically, Dogecoin continues to trade below the 50-day exponential moving average at $0.074 and the 100-day EMA at $0.081, maintaining a bearish short-term profile. However, the daily RSI showed bullish divergence: while DOGE set a lower low on August 1, the RSI moved higher, typically a sign of slowing selling pressure.

The Awesome Oscillator also formed higher lows even as the price held close to local minimums, further reinforcing the possibility of a reversal. Key resistance is set at $0.074, $0.076, and $0.081, while immediate support remains at $0.070, with the yearly low at $0.067 marking a critical line for traders.

Market participants identified $0.0710 as a technical pivot, with a decisive daily close above this threshold potentially driving renewed upward momentum. Conversely, a breakdown below $0.070 could encourage further selling.

Traders are now monitoring price action and funding rates closely as Dogecoin tests these crucial levels, with whale activity and bullish derivatives positioning adding further intrigue to its next potential move.