DOGE Outflows Soar: Is a 35% Dogecoin Price Rally on the Horizon?

The Dogecoin price is currently oscillating around $0.21, maintaining a 30% gain for the month despite a 13.6% correction observed in the past week.

However, this recent dip doesn't seem to have deterred significant investors. On-chain data indicates that whales are capitalizing on the price reduction, with DOGE outflows from exchanges on the rise.

This suggests a potential breakout towards $0.30 may be in the works. Should buying pressure intensify, the DOGE price could potentially experience a 35% surge from its recent lows.

DOGE Whales Show Accumulation

Whale wallets have been actively accumulating DOGE in the last 24 hours, adding 130 million Dogecoins to their holdings. Such aggressive accumulation by large holders during a price dip often signals confidence in an upcoming rebound.

It's worth noting that substantial accumulation by whales, particularly in the realm of meme coins, often suggests market bottoms.

Supporting this trend, exchange net flows have become significantly negative. More DOGE is being withdrawn from exchanges than deposited, indicating that holders are transferring their tokens to cold storage rather than keeping them readily available for sale.

Historically, negative net flows have coincided with local bottoms, as they demonstrate that major players are not preparing to sell off their holdings.

The combination of whale accumulation and outflows from exchanges presents a bullish outlook for the Dogecoin price, suggesting that informed investors are anticipating a strong recovery.

Open Interest and Funding Rates Suggest Breakout Potential

In the derivatives market, traders are maintaining their interest despite recent volatility. Open interest remains steady at approximately $4 billion, indicating a substantial amount of capital is still committed to DOGE futures.

This level of engagement implies that many traders anticipate another significant price movement in the near future.

The funding rate is relatively flat at 0.006%, indicating a balance between long and short positions. A balanced funding rate is crucial as it prevents forced liquidations that could unexpectedly depress the Dogecoin price.

With high open interest and low funding costs, the current setup allows for a cleaner upward movement if buying pressure increases. This pattern also hints at a potential spot-driven rally, should it materialize.

If bullish sentiment returns with force, derivatives traders could further fuel the next DOGE breakout, driving the price towards the next resistance levels.

Key Dogecoin Price Levels: Support and Resistance

The Dogecoin price is currently establishing a base around $0.21, with short-term support forming near this level. Maintaining this level is critical.

A drop below this level could weaken the bullish structure and potentially drag DOGE lower towards $0.20 or $0.19.

On the upside, the next significant obstacles lie at $0.25 and $0.27, both acting as strong resistance zones. These zones are identified using the trend-based Fibonacci extension indicator.

The use of this indicator is appropriate given the Dogecoin price has been in an uptrend, despite occasional pullbacks.

A decisive break above $0.26 could pave the way for the next Fibonacci target near $0.30, representing a 35% rally from recent lows.

To invalidate the bullish scenario, bears would need to push the DOGE price below $0.21, breaking support and initiating a deeper correction.

Currently, the market is closely observing whether whale buying, coupled with strong outflows and stable derivatives data, can help DOGE regain its upward momentum and deliver the breakout traders are anticipating.