Understanding Dogecoin’s breakout potential and why whale activity could be key

• Whales have accumulated another 100 million DOGE in the last 24 hours
• Funding rate for Dogecoin Futures stood at 0.0029

Dogecoin (DOGE), the popular memecoin, is currently navigating a consolidation phase, as evidenced by the formation of a triangle pattern. Also, recent whale activity underlined the accumulation of 100 million DOGE in the last 24 hours – A sign of growing confidence and demand in Dogecoin’s future value.

What’s behind DOGE’s accumulation?

Whale activity has always been a key influencer in the cryptocurrency market, and Dogecoin is no exception. According to an analysis, whales have accumulated an additional 100 million DOGE in the last 24 hours.

Such moves by large investors typically create price momentum as they reduce the available supply in the market. This hike in demand, combined with the confidence displayed by whales, can have a ripple effect, influencing smaller investors and potentially driving the price higher.

Also, this accumulation seemed to align with the slightly bullish market sentiment indicated by the funding rate. This further hinted that Dogecoin might be gearing up for a potential price hike on the charts.

Preparing for a price breakout?

AMBCrypto’s analysis revealed the formation of a clear triangle pattern on the 1-hour chart, indicating a consolidation phase. Such a pattern often precedes a breakout, either upwards or downwards, and the direction of this breakout will be pivotal.

Source: CoinGlass

If the price breaks upwards, it would validate the bullish sentiment driven by whale accumulation and positive funding rates. However, a southbound break could signal the continuation of the prevailing bearish trend.

On the contrary, the RSI chart revealed that DOGE has been fluctuating within neutral territory, without entering overbought or oversold conditions recently. This means that while volatility exists, the market is not yet in extreme conditions that typically precede a reversal.

Source: CoinGlass

The behavior of the RSI supported the notion that Dogecoin is more likely preparing for a breakout, rather than a traditional price rebound. Especially as it’s not currently showing signs of market exhaustion.

Market awaits Dogecoin’s next step

Looking at the Cumulative Volume Delta (CVD) chart, there seemed to be a slight negative trend, with values fluctuating between -1.238B and -1.246B. This indicated that sell volume has slightly outweighed buy volume in recent hours – In line with the consolidation phase.

However, this negative trend is not strong enough to hint at significant bearish movement. Rather, it reflects a balance between buying and selling pressures.

With the price remaining within the triangle pattern, the CVD suggested that the market may be awaiting a decisive breakout. Should volume shift in favor of buyers, the price could break upwards, confirming the positive sentiment in the market.

Will Dogecoin’s momentum continue to build?

Finally, the funding rate for Dogecoin Futures stood at 0.0029 – A positive value indicating that long position holders are paying short position holders.

This alludes to a bullish outlook in the market, one where traders expect the price to rise in the short term. Additionally, the Aggregated Futures bid and Ask Delta revealed a value of 22.223M – A sign of strong buying interest in the Futures market.

The positive delta suggested that market participants are more inclined to buy Dogecoin, which could push the spot price higher upon a breakout from the triangle pattern. This alignment of positive funding rates and higher buying interest in Futures further supported the likelihood of bullish movement for DOGE.