Dogecoin reclaims $0.10: Will whale demand sustain DOGE’s upside?

Dogecoin [DOGE] extended its week-long bullish streak, reclaiming the $0.10 resistance. The memecoin touched a local high of $0.104 before slightly retracing to $0.1003. 

With the bullish move, DOGE crossed above 20 and 50 EMAs, indicating strong short-term strength. 

Dogecoin whales step in to defend higher levels

After DOGE reclaimed $0.09 and strengthened above that level, whales increased their accumulation. 

The memecoin saw increased demand from large players between $0.092 and $0.097, laying the groundwork for the trend’s continuation. Spot Average Order Size data showed sustained whale orders across these price levels. 

Such activity indicated increased whale participation in the market, but on the demand side, as evidenced by the Spot Taker CVD. This metric has remained positive for seven consecutive days. 

A positive Taker CVD indicates that buyers have mostly dominated the market, validating the buyer’s presence. 

Furthermore, exchange activity echoed these market conditions, as netflow turned negative for the first time in two days. 

According to CoinGlass data, $193.7 million flowed out of exchanges compared to $184.9 million in inflows. As a result, Spot Netflow dropped 239% to $-$8.77 million, at press time, a clear sign of aggressive spot accumulation. 

Traditionally, increased whale accumulation has accelerated upside momentum, leading to higher prices.

Futures traders are aggressively derisking.

Although whales on the spot side have shown higher determination, futures participants remain bearish. After DOGE reclaimed $0.1, Futures outflows skyrocketed, reaching $508.1 million over the past 12 hours.

Over the same period, Futures inflow declined to $486 million. As a result, Futures Netflow dropped 185% to -$22.06 million.

When Futures netflow dips into negative territory, it suggests increased market exits, with traders aggressively pulling capital out of the market. Such market behavior implies fear, as traders derisk.

Often, reduced futures capital could lead to a more stable uptrend as the market becomes less aggressive.

What’s next for DOGE?

Dogecoin reclaimed $0.1, largely driven by spot demand arising from whales. At the same time, Futures traders withdrew capital as they derisked.

With the spot demand holding steady, the memecoin’s upside momentum remained elevated, as evidenced by Stochastic RSI. At press time, the momentum indicator rose to overbought territory but formed a bearish crossover, falling to 93.

Still, it remained in an overbought zone, showing increased buying pressure in the market. Furthermore, DOGE flipped its short-term Moving Averages, indicating a stronger trend.

Therefore, if recent demand holds, DOGE could hold $0.1 and eye its long-term resistance at $0.11. However, if traders continue to abandon futures, lower capital could pose downside risk and cause another drop to $0.095.

Final Summary

• DOGE showed upside momentum, flipping short-term MAs to reclaim $0.1 resistance. 
• Dogecoin upside momentum continued, largely driven by whale demand on the spot.