Large holders of Dogecoin [DOGE] purchased as the market recorded the most recent drawdown and pushed the meme coin to post an increase of 1.69% to $0.0708.
Buying aids an initial recovery attempt, but DOGE remains under key resistance. Meanwhile, positive funding indicates derivatives traders are long already, further highlighting the need for increased demand in the spot market.
Large Dogecoin holders add 180M DOGE
Wallets with between 10 million and 100 million DOGE have scooped up some 180 million tokens, according to Santiment data.
Their holding of the total DOGE supply increased slightly from about 11.85% to 11.97%.
Holdings are still below late-July level so there is not actually a buy trend since the last month’s increase looks like a renewed accumulation trend.
The holdings may be at the addresses of the exchanges and custodians too. Data shows that there are increasing balances in the cohort, but the motivation for the increase is not clear.
Derivatives positing are also improving.
DOGE open interest, according to CoinGlass, is hovering near $1.17 billion as OI-weighted funding rate remains positive for the most part since July, meaning leveraged traders are positioned towards the long-side of the market.
Funding has remained below 0.01% for funding, usually never spikes beyond 0.01%; it is not yet overheated. Funding at such high Open Interest raises the risk of liquidation if DOGE support breaks.
Can DOGE break $0.074?
DOGE traded near $0.0708 right in the middle of its 20-day Donchian Channel, the nearest breakout boundary is upper at $0.074, and support remains at the lower boundary near $0.0676.
Earlier, an early bullish crossover of the MACD has seen the MACD move above its signal line.
All are yet again underneath zero, implying that the price is gaining momentum within a bearish framework than truly reversing the trend.
Money Flow Index stands at 34.07 and therefore the buying activity remains to be relatively on the lower side. DOGE is trading way below 200DMA [0.0915].
A daily close above $0.074 could see bulls pushing prices towards $0.08. Failing at $0.0676 would hurt the recovery and prices could be pushed south towards a test of recent lows.
Final Summary
- In total, the top addresses added 180 million DOGE to their holdings, but they are still not where they were at the end of July.
- Considering derivatives traders leaning long, DOGE needs stronger spot demand to seal a move above $0.074.