Dogecoin Flashes Breakout Signs as Whales Accumulate Coins Ahead of Potential Bullish Reversal

Dogecoin (CRYPTO: DOGE) is showing early signs of a potential breakout, with a confluence of factors - including whale activity, rising social buzz, and promising technical patterns - hinting at a bullish reversal for the meme coin.

Here's a closer look:

What Happened: Blockchain data reveals that large investors have been accumulating Dogecoin, with nearly 100 million coins bought in the past week.

This behavior, typically followed by smaller traders, has historically been a precursor to upward trends in the crypto market.

At the same time, Dogecoin is experiencing a resurgence in the crypto conversation, with its 'social dominance' - a metric measuring a coin's mentions relative to top assets - increasing from less than 1% to over 2.5% in just a few weeks.

This renewed community interest is being fueled by speculation around a possible Dogecoin ETF listing, following Nasdaq's filing to list a product from 21Shares.

Technical analysts are also keeping an eye on Dogecoin, with one chart analyst, 'CryptoBullet,' highlighting the rare occurrence of the Livermore Accumulation Cylinder reversal pattern.

This pattern, according to the analyst, could set the stage for a substantial rally.

While some predictions suggest Dogecoin reaching highs of $3 in the long term, shorter timeframes indicate a more realistic target of $0.26 based on recent wedge breakouts.

However, if the price drops below key support around $0.13, bullish momentum is likely to diminish rapidly.

For the time being, Dogecoin seems to be forming the kind of base that usually precedes significant moves in the crypto sphere.

Top Chart: According to Benzinga Pro's time-frame, over the past month, Dogecoin has experienced a decline of 35%.

In the shorter time-frame, the cryptocurrency is currently trading at $0.13, exhibiting a decrease of 36% over the past three months.

As the meme coin continues to move lower, traders and investors are keeping an eye on the key support level at $0.13. A breach below this level could quickly negate the bullish momentum and signal a continuation of the bear market.

On the other hand, holding above the support and showing signs of recovery could invite more buyers into the market, ultimately pushing the coin higher.

The meme coin has also been subject to significant interest from institutional investors, with new data from Glassnode showing that large investors, or whales, have been accumulating Dogecoin in recent weeks.

According to the on-chain analytics firm, an astronomical 99.98% of Dogecoin in circulation is currently being held by entities with a balance of 100 to 10k coins.

"This extreme coin concentration is typically observed during the final stages of bear markets, as smaller investors get liquidated or surrender their holdings to larger investors during market bottoms or tops."

According to the firm, in the past week alone, large investors have mopped up a massive 99.64% of the total coins bought by smaller investors.

"This behavior is usually followed by smaller traders, and it is often a precursor to upward trends in the market."