Dogecoin holds $0.070 as whale buying and funding turn bullish

Dogecoin is showing early recovery signs as whale wallets accumulate tokens and derivatives metrics turn bullish.

Dogecoin traded near $0.070 on Tuesday, holding above key support as whale wallets accumulated 180 million tokens since Saturday.

Wallets holding between 10 million and 100 million DOGE bought roughly 180 million tokens since Saturday, according to Santiment's Supply Distribution data, while wallets holding 100,000 to 1 million DOGE sold about 10 million tokens over the same period. The net accumulation, worth roughly $12.6 million at current prices, suggests larger holders are treating the recent decline as a buying opportunity.

Derivatives data points to a bullish bias. CoinGlass shows DOGE's long-to-short ratio at 1.27, the highest in more than a month, with a reading above one indicating more traders expect gains. Funding rates flipped positive on July 24 and climbed to 0.0096%, meaning long traders are paying shorts to keep positions open.

DOGE must clear the 50-day EMA at $0.074 and a descending trendline near $0.076 to confirm a recovery, with the 100-day EMA at $0.081 and a horizontal barrier at $0.088 capping further upside. A daily close below the yearly low at $0.067 would invalidate the bullish setup and open a path toward $0.065.

Bullish divergence builds on the daily chart

Momentum indicators support the recovery case. DOGE formed a lower price low on Aug. 1 while the Relative Strength Index registered a higher low, a bullish divergence that suggests selling pressure is fading. The Awesome Oscillator shows the same pattern, with rising lows while price holds near its recent bottom.

The setup comes as the broader crypto market stays cautious, with Bitcoin trading near $64,000 and the Fear and Greed Index at 37, down from 40 the previous day. DOGE remains well below its 50-day EMA at $0.074 and 100-day EMA at $0.081, keeping the near-term tone bearish until buyers reclaim those levels.

A break above $0.076 would strengthen the short-term bullish case and could draw momentum traders into the token, while a close below $0.067 would likely trigger long liquidations given the elevated long-to-short ratio and positive funding, deepening the decline toward $0.065.

This article is for informational purposes only and does not constitute investment advice.