Dogecoin has been showing signs of strength in recent weeks, and one key factor that could be influencing the cryptocurrency’s rebound is the massive accumulation by larger investors, also known as whales.

According to on-chain data shared by crypto expert Ali, wallets holding between 100 million and 1 billion DOGE have added more than 1 billion tokens over the past month. This brings their total holdings to one of the highest levels in recent weeks, signaling growing confidence among larger market participants.

This timing of this accumulation is interesting. As whales were busy building positions between May 4 and May 7, DOGE price managed to reverse its short-term downtrend and surged from $0.13 to a high of $0.22. This 57% rally unfolded almost in sync with the spike in whale holdings, suggesting that big players may have been anticipating or even driving the breakout.

After the rally, Dogecoin is now consolidating in a familiar range of $0.22 to $0.24. This range is significant as it marks the Fib 0.382 to Fib 0.5 levels, offering strong support for further upside.

Dogecoin price is also trading above the 200-period simple moving average (SMA) on the 4-hour chart, which now sits around $0.183. This average had capped the cryptocurrency’s upside momentum for weeks, but with a decisive move above this SMA, the structure has flipped into dynamic support for the bulls. As long as the price remains above this SMA, the bias remains with the bulls.

On the other hand, if sellers regain control and push the price below this SMA, it could open the door for a deeper correction towards the next major support at $0.1.

On the upside, the next key resistance level to watch is at $0.26, which could be a challenging point for buyers to overcome. A successful breach of this level might pave the way for a continuation of the uptrend towards the $0.30 handle.

Furthermore, on-chain metrics are also indicating strength in the current setup. Active addresses, transaction volume, and whale transactions have all increased during the recent rally, according to a second chart shared by Ali.

Notably, transaction counts by whales at volumes above $100K surged during the price breakout, and active user engagement has remained high even during consolidation, which showcases participation from both retail and institutional players.

Overall, the technicals remain neutral to bullish. The RSI has reset from overbought levels around 80 and is currently hovering around 51, providing room for another potential move up.

As long as Dogecoin price manages to hold above its key supports and on-chain metrics remain elevated, the structure favors continued upside momentum in the coming weeks.