Dogecoin Whale Alert: Surging Open Interest Signals Imminent Price Rally

Whales are circling Dogecoin again—and this time, they’ve brought the leverage. Open interest spikes as DOGE flirts with breakout territory.

Bullish or Bluster?

While retail traders meme, big players are quietly accumulating. Whale transactions hit a monthly high, but will the ‘people’s coin’ actually deliver? Or is this another pump primed for the usual suspects to dump?

Liquidity Games

Futures markets are heating up faster than a Shiba Inu chasing treats. The irony? Most traders won’t see the warning signs until their portfolios get rekt. Stay sharp—crypto’s casino always favors the house.

Dogecoin whales gain confidence

Large-wallet investors, commonly referred to as whales, are one of the few key catalysts fueling bull runs in crypto, especially meme coins. Typically, a surge in whale wallet balances is considered a buy signal as it reflects increased confidence of large investors. 

Santiment data shows that investors holding over 100 million DOGE tokens have purchased 680 million additional tokens since August 1. The total holding of these investors has reached 98.56 billion DOGE, the highest since December 1.

Dogecoin supply distribution. Source: Santiment

Capital inflows surge in DOGE derivatives

Dogecoin Open Interest refers to the total value of DOGE futures and open interest in US dollars. An increase in OI WOULD indicate capital inflows as traders gain interest in the meme coin. 

CoinGlass data shows the DOGE OI rising over 9% in the last 24 hours, reaching $3.32 billion. 

DOGE Open Interest. Source: Coinglass

Dogecoin eyes to break out of a V-shaped reversal pattern

Dogecoin loses intraday gains as it reverses from the $0.2471 peak formed earlier on Monday, hinting at a bearish turnaround. The meme coin struggles to surpass the $0.2407 resistance level, marked by the July 27 close, which acts as the neckline of a V-shaped reversal pattern.

The V-shaped reversal in Dogecoin aligns with the renewed interest of large investors in the meme coin. However, a failure to surpass the neckline could result in a pullback to the $0.2145 level, marked by the May 17 close.

The technical indicators maintain a bullish incline as the Moving Average Convergence Divergence (MACD) line crosses above its signal line. Still, investors must remain cautious as the average lines remain flat. 

The Relative Strength Index (RSI) currently stands at 58 on the daily chart, above the midpoint level. This suggests a marginally greater buying pressure, with room for further growth. Furthermore, the Golden Cross between the 50-day and 200-day Exponential Moving Average flashes a textbook buy signal.

DOGE/USDT daily price chart.

Looking up, a decisive push above the $0.2407 neckline could extend the dogecoin rally to the $0.2848 resistance, which was last tested on July 21.