Where’s Dogecoin Headed as Whales Accumulate 4.72B DOGE in Two Weeks?

Dogecoin sees increased whale activity, signaling potential upward movement. Where is DOGE Headed?

The state of the cryptocurrency market during this writing appears calm, with little to no movement on top crypto assets in the past hour. The positive ascent can be attributed to President Trump signing a bipartisan bill ending the 43-day U.S. government shutdown.

Specifically, Dogecoin, the largest meme coin by market cap, is up 2.3% in the past 24 hours, trading at $0.1757. On the longer timeframe, Dogecoin is up 7.3% in the past seven days but plummeted 8.1% in the 14-day timeframe. Amid this positive movement, the question remains: will DOGE continue its upward trend or reverse amid Dogecoin whale purchases?

Dogecoin Whales Are Still Buying

Notably, in the past two weeks, Dogecoin has seen a significant increase in whale activity. In this timeframe, approximately 4.72 billion coins were purchased by large holders. Within this period, the chart, shared by analyst Ali Martinez on X, indicates a clear divergence between the price of DOGE and the accumulation behavior by whales.

This increase in whale activity suggests that large investors are positioning themselves for potential gains. As the whales accumulated, Dogecoin price was in a decline, suggesting that these large holders may have been strategically buying the dip. 

This behavior is typical of investors who seek to capitalize on lower prices by purchasing large quantities during periods of market weakness. Now, where is the market headed?

Dogecoin Price Analysis

Looking at technical charts, the Relative Strength Index in the 1-hour timeframe is currently at 61.66. This indicates that Dogecoin is nearing overbought territory, but not yet at the extreme levels that would signal an immediate reversal. 

The RSI’s gradual upward trend suggests that bullish momentum is building, but caution is still warranted as it approaches the 70 mark, which would suggest potential overbought conditions.

Meanwhile, the Moving Average Convergence Divergence indicator has shifted to a more bullish signal, with the MACD line crossing above the signal line, accompanied by green bars on the histogram. This positive crossover typically signals DOGE’s potential continuation to the upside. 

However, given that the price is still relatively close to recent support levels, such as the $0.168 mark, and the RSI indicates some room before reaching overbought conditions, there is potential for further upward movement in the near term. 

Despite this, the MACD is at a position that has previously preceded a shift in momentum, where the price tends to reverse direction. If the MACD reaches exhaustion or begins to converge with the signal line, it could signal the loss of bullish momentum.

Analyst Shares View

Elsewhere, Trader Tardigrade has identified a bullish divergence in Dogecoin’s hourly chart, particularly highlighted by a Low-Time-Frame (LTF) RSI signal. The shared chart shows that despite Dogecoin’s price moving to lower levels in this timeframe, the RSI has been forming higher lows, indicating growing buying pressure even as the price declines.

This divergence typically suggests that the downward momentum is weakening, potentially signaling an upcoming reversal or upward movement. In the case of a breakout, the analyst placed his next target at $0.191.