Dogecoin Whales Accumulate $48M as Price Tests Critical Support Levels

Despite trading beneath significant moving averages, Dogecoin (DOGE) is showing signs of potential rebound momentum. The meme coin has been hovering near the $0.070 mark, a crucial psychological threshold, as large holders accumulate tokens during price weakness.

Data from Santiment reveals that addresses holding between 10 million and 100 million DOGE have added approximately 180 million tokens to their positions since this past Saturday. Meanwhile, smaller addresses in the 100,000 to 1 million token bracket have reduced their holdings by roughly 10 million DOGE.

Cryptocurrency analyst Ash Crypto highlighted on social platforms that DOGE has reached unprecedented oversold territory, declining 90% from its peak and touching a 3-year minimum at $0.067. The monthly Relative Strength Index has dropped to levels even more extreme than those witnessed during the 2022 bear market trough.

The derivatives landscape is also painting an increasingly optimistic picture, with DOGE's long-to-short ratio climbing to 1.27 on Tuesday, marking the highest reading in more than 30 days. Perpetual futures funding rates crossed into positive territory on July 24 and have since risen to 0.0096% as of Tuesday’s trading session.

Whale addresses accumulated an additional 680 million DOGE tokens valued at approximately $48 million in anticipation of a potential Federal Reserve interest rate reduction. Such monetary policy shifts typically benefit speculative cryptocurrency assets including DOGE.