There is a strong bearish wave in the market that has seen Dogecoin [DOGE] decline by 9.83% in the past 24 hours. This brings its monthly decline to -36.13%.

A closer analysis of several market metrics suggests that DOGE’s current condition is likely temporary and that a rally could begin soon as sentiment shifts.

Massive whale accumulation of DOGE

There has been significant investor accumulation of DOGE in the last 24 hours, as recorded by Santiment.

Whales—addresses controlling a notable supply of an asset, typically between 100 million to 1 billion units—have been actively acquiring DOGE.

This cohort has accumulated a total of 1.40 billion DOGE over the past 24 hours, highlighting strong demand for the asset. A market rebound could be imminent, especially if DOGE begins to record even minimal gains.

This bullish sentiment comes at a time when Santiment data shows DOGE has hit its most negative social volume and weighted sentiment in the market—historically a sign of a potential bottom.

As demand grows and key metrics reach a bottom, DOGE could be poised for a major reversal, with its price trending higher from its current levels.

Spot buys vs. derivative sells—What’s next?

In the spot market, traders have been aggressively accumulating DOGE over the past week and in the last 24 hours.

In the past day alone, traders have purchased a total of $8.05 million worth of DOGE, with $44.34 million bought over the past week.

Rising demand suggests that traders see DOGE’s recent lows as an opportunity and are accumulating ahead of a potential rally.

However, AMBCrypto found that while several metrics indicate bullish sentiment, derivative traders remain bearish. Instead of going long, they are opening short positions, expecting DOGE’s decline to continue.

At the time of writing, the Open Interest Weighted Funding Rate—a metric combining open interest and funding rate to predict market trends—suggesges DOGE could trend even lower.

With a negative reading of -0.0077%, this indicates more short positions in the market, with short traders paying a premium to maintain their positions.

Such sentiment could delay DOGE’s potential rally. Until the funding rate shifts to a positive region, DOGE may remain under pressure.

Price movement on the chart

The broader outlook shows that DOGE has reached a critical support level on the weekly chart, trading close to the $0.142 region. This support level previously acted as a catalyst for DOGE’s rally that began in October 2024.

If this support holds, DOGE could see a significant recovery, potentially reaching as high as 240%. If market fundamentals remain strong, the rally could unfold even faster.