Can Dogecoin Price Surge To $5 Amid Whale Accumulation?

Dogecoin (DOGE) price appeared to be regaining momentum this week as whale wallets recorded a significant accumulation phase. Moreover, technical formations hinted at a potentially explosive breakout.

Over the past week, major wallets added over 100 million DOGE. Analysts pointed to a long-form cup pattern that could drive the token price as high as $5 in the long term.

Whales Accumulation Strengthens

Large-scale Dogecoin transactions resumed with intensity this week. According to on-chain data shared by analyst Ali Martinez, wallets holding between 10 million and 100 million DOGE acquired 100 million tokens in the past seven days. This activity followed a period of lower inflows in April.

The increase in whale holdings suggested growing confidence among large investors. Similar accumulation patterns in 2021 preceded explosive rallies, which pushed DOGE price above $0.70.

At the time of accumulation, Dogecoin price hovered near $0.14 with rising volume on top-tier exchanges.

It is important to note that freshly accumulated DOGE tokens have not returned to exchanges. Instead, those cryptos headed into long-term wallets, as per the data.

It effectively reduces the available trading supply. This trend supports bullish setups because it limits downside volatility and raises the possibility of a supply squeeze.

Cup Formation Reveals Long-Term Bullish Structure

CryptoELITES presented a technical analysis in an X post, highlighting a multi-year cup pattern on Dogecoin’s weekly chart.

The formation included a broad, rounded bottom and neckline resistance near $0.225. It previously acted as both a resistance and support zone.

This structure aligned with Dogecoin’s historical patterns, where prolonged consolidation phases precede large upward moves.

$0.75, $1.50, and $2.70 are the projected breakout targets from the formation. A full extension, supported by macro market momentum, could reach as high as $5.

More so, CryptoELITES emphasized that Dogecoin price has likely completed its bottoming phase.

Supporting indicators, such as growing volume and upward-sloping moving averages, confirmed the pattern’s validity. DOGE price must hold above the neckline to confirm bullish continuation.

Short-Term Target of $0.225 Highlights Immediate Resistance for Dogecoin Price

Analyst Andrew Griffiths, writing for Whalehunt, offered a short-term Dogecoin price prediction of $0.225. Griffiths re-entered DOGE price at $0.14 after booking profits earlier near local highs. His analysis showed a 25% breakout zone with potential for a 40% gain if the pattern confirms.

He noted that Dogecoin has formed a rounded base between $0.14 and $0.19. The price action closely resembles the earlier stages of the larger weekly cup pattern.

If DOGE price sustains above $0.14, a move toward $0.225 becomes increasingly likely in the near term.

Volume trends support this setup. The price has experienced accumulation phases on both 4-hour and daily charts while volume levels have steadily risen.

However, analyst Griffiths warned that prices below $0.12 may cause a breakdown of the current setup. That could extend the time needed for a possible breakout.

Dogecoin Price Sentiment and On-Chain Data Reflect Growing Confidence

Community sentiment surrounding Dogecoin has become increasingly optimistic. Dogecoin mentions across social platforms are rising.

Engagement metrics also reflect returning retail interest. Open interest in DOGE futures also increased 8% this week, suggesting stronger speculative positioning.

On-chain data revealed growing exchange outflows. This trend indicates that holders are moving DOGE into cold storage. It reduces immediate sell pressure and improves the setup for further gains. The declining supply on exchanges supports accumulation theories.

Funding rates on major trading platforms continue to display positive values. Moreover, positive funding rates reveal that long position traders outnumber short position traders. The present market outlook appears bullish because of improving volume combined with whale activity.

If Dogecoin price stays above $0.20 while surpassing $0.225, it would accelerate its journey towards $0.75 and $1.50.

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