Dogecoin is showing strong bullish signals due to a 112% increase in whale accumulation over the last week.
Favorable macroeconomic factors are boosting crypto market sentiment.
Dogecoin's open interest surged over 21% in July, and futures funding rates are positive.
A multi-year "cup-and-handle" technical pattern shows that Dogecoin could see a 345% price increase towards $0.75 upon breakout.
For a confirmed bullish breakout, Dogecoin must overcome immediate resistance at $0.186.
Dogecoin is back in the spotlight after weeks of low volatility and sideways price action.
A rise in whale accumulation and fresh interest from derivatives traders is now pointing to a possible breakout, and Dogecoin could be ready to rise by as much as 300% or even more.
Could Dogecoin finally be preparing to explode?
According to data from IntoTheBlock, large Dogecoin holders have massively increased their positions.
In fact, whale accumulation has jumped 111.97% in just one week. This spike in netflows, or the total amount of DOGE moving into whale wallets is typically seen as a sign of strong investor confidence.
Historically, large wallet activity has been a major indicator of big price movements in the crypto space.
For DOGE, which has been trading in a tight range between $0.126 and $0.176, this sudden whale interest could show that big players are gearing up for a major move.
On the macroeconomic front, the timing of this accumulation is no coincidence.
The U.S. government recently extended its “Liberation Day” tariff pause to August 1, which has given the markets a breather from trade war fears.
At the same time, major banks are now predicting that the Federal Reserve could start cutting interest rates by 0.25% to 1% as early as July.
These changes have created a more favorable environment for risk-on assets like crypto.
While Dogecoin tends to move more based on community hype than macroeconomic events, the easing of these interest rates appears to be setting the stage for risk takers to bring more capital into the memecoin space.
Another bullish indicator is coming from the derivatives market. According to Coinglass, Dogecoin’s open interest (OI) has remained above $2 billion, which has been unseen since June.
Dogecoin’s open interest on the rise | Source: Coinglass
This metric has also grown by 21% since the start of July, and the trend shows that traders are more and more betting on larger price movements.
Even more telling is the current funding rate of +0.21%, which shows that long positions are in demand.
In simple terms, more traders are willing to pay a premium to hold bullish bets on DOGE.
From a technical perspective, Dogecoin may be nearing the final stages of a multi-year cup-and-handle pattern.
According to the charts, DOGE is now trading near a “confluence zone” that combines long-term support (dating back to mid-2024) with the upper boundary of the handle formation.
Ongoing cup and handle on Dogecoin
If a breakout shows up, the pattern’s technical target sits at around $0.75. As expected, this stands as a staggering 345% increase from current levels.
Momentum indicators support this bullish view because the RSI is trending upwards toward the neutral 50 mark and the MACD is on the verge of a golden cross, where the MACD line moves above the signal line.
However, for the breakout to be confirmed, DOGE must break immediate resistance at $0.186.
A failure here could lead to a rejection and a return to historical support levels.
While the technical setup looks promising, there are still a few risks. For example, if DOGE fails to break above $0.186, the next support sits around $0.09.
This stands at a 45% drop from current levels towards the mid-2024 market bottom.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.