Whales Awakened After 6 Months, How Far Will Dogecoin's Relentless Rally Go?

▲ Dogecoin (DOGE) ETF/ChatGPT Generated Image ©

Dogecoin (DOGE), the eternal meme coin leader, is opening the curtain on a new bull market, staging a four-day rally fueled by a record-breaking accumulation storm by whales and an influx of derivative funds from retail investors.

According to investment media FXStreet on May 1 (local time), Dogecoin has recorded a return of approximately 10% this week alone, continuing to trade above $0.1000 and building strong short-term upward momentum. Demand is surging across spot and derivatives markets, a positive sign typically indicating that large market capital is circulating into the meme coin sector.

CoinGlass data analysis shows that the open interest in Dogecoin's derivatives market increased by over 3% in the last 24 hours, reaching $1.67 billion. This reflects active position building in the market. At the same time, the funding rate decreased from 0.0057% on Thursday to 0.0013% but remains positive, which is interpreted as a healthy correction where the excessive optimism of buyers holding long positions is somewhat tempered, reducing the premium burden.

The movement of whales, referring to large wallet investors, is even more explosive. According to data from blockchain analytics platform Santiment, Dogecoin whale on-chain activity on Thursday reached a 6-month high, with a staggering 739 large transfers valued at over $100,000. Notably, 149 giant whale wallets holding over 100 million Dogecoins increased their holdings to an all-time high of 108.52 billion coins, demonstrating strong interest in the leading asset.

Technical indicators also point to a clear short-term bullish bias. The price has risen above both the 50-day exponential moving average (EMA) at $0.0975 and the 100-day EMA at $0.1046. On the daily chart, the Relative Strength Index (RSI) is around 74, indicating an overbought region and strong upward momentum, while the Moving Average Convergence Divergence (MACD) is also extending into the positive territory above its signal line, suggesting positive upward pressure. However, the possibility of a short-term pullback due to overheated indicators cannot be ruled out.

If the rally continues, the key will be whether it breaks past the first resistance level at $0.1161 and the 200-day exponential moving average (EMA) at $0.1239, which has been suppressing the long-term trend. If these barriers are decisively overcome, an explosive further increase towards $0.1565 can be expected. Conversely, if downward pressure intensifies, the 100-day EMA at $0.1046 is expected to act as the primary support, and strong buying interest at lower prices is anticipated around the psychological defense lines of $0.1000 and $0.0975.

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