Dogecoin Whales Accumulate 240M DOGE: Why Is Price Still Falling?

Dogecoin Whales Accumulate 240M DOGE Amid Correction, But Derivative Selling Pressure Persists

Dogecoin ($DOGE) has remained in a retracement phase over the past three weeks, with the price correction showing no immediate signs of ending. The decline mirrors broader weakness across the memecoin sector, where the top ten assets by market capitalization all traded in negative territory over the last 24 hours.

Spot Whale Accumulation Intensifies at Discounted Levels

On-chain data reveals that large holders are using the pullback to increase positions. The number of $DOGE tokens held by whales rose from 18.72 billion to approximately 19 billion over the past week. According to crypto analyst Ali Martinez, spot holders purchased over 240 million $DOGE tokens worth more than $20 million during this period.

Source: Ali Martinez/X

While this accumulation signals growing confidence ahead of a potential rebound, analysts caution that buying activity alone does not guarantee immediate price appreciation. The current price action reflects a market awaiting exhaustion of selling pressure before a directional move.

Technical Outlook: 0.618 Fibonacci Level Tested as Key Support

On the 4-hour chart, Dogecoin is trading near the 0.618 Fibonacci retracement level, measured from the prior rally between $0.07 and $0.10. Bulls are encountering resistance at $0.085, which aligns with the 50% retracement level. The lower boundary of the recent sideways range sits at $0.082, identified as the most recent demand zone that previously propelled price to $0.095.

Source: $DOGE/USDT on TradingView

Maintaining support above $0.080 and clearing the $0.085 resistance would reopen the path toward $0.10. However, market structure remains mildly bearish. A decisive break below $0.080 would reinforce downside risks. Supporting this view, the Bull Bear Power (BBP) indicator flashed red at press time, while the Relative Strength Index (RSI) at 40 remains 10 points above oversold territory, suggesting selling pressure has not yet fully exhausted.

Derivative Data Reveals Profit-Taking and Leveraged Unwinding

Data from CryptoQuant shows that large whales have dominated the Futures Average Order Size since $DOGE reached $0.10 on August 22, indicating profit-taking by major holders following the rally. Further analysis of the Futures Taker Cumulative Volume Delta (CVD) confirms that sellers have been the dominant force in derivatives markets.

Source: CryptoQuant

Compounding the bearish signals, Open Interest (OI) has declined across major exchanges including Binance, OKX, Bybit, KuCoin, and Gate. On KuCoin Futures alone, $DOGE open interest fell by 5%, according to CoinGlass data. The combination of leveraged profit-taking, declining OI, and persistent derivative selling explains why prices continue to fall despite notable spot accumulation by whales.

Summary

• Whales accumulated over 240 million $DOGE in the past week during the correction.
• $DOGE is testing the 0.618 Fibonacci retracement level, a historically significant bounce zone.
• Technical indicators show selling pressure remains unexhausted, with RSI at 40 and BBP negative.
• Futures data points to large-holder profit-taking and broad-based Open Interest decline as primary drivers of the downtrend.