Dogecoin Crypto Whales Buy 500M DOGE During Market Dip – Here Is Why Traders Are Watching

• Dogecoin whales accumulated roughly 500 million DOGE during the recent market correction.
• Derivatives data remains mixed, with bearish long-to-short ratios but improving funding rates.
• DOGE continues holding key support near $0.104 while facing resistance near the $0.106 and $0.122 levels.

Dogecoin is showing signs of life again after bouncing back above the $0.105 level on Friday, recovering from a rough stretch earlier this week when sellers pushed the meme coin toward critical support zones. The rebound has caught traders’ attention, especially after on-chain data revealed that several large DOGE holders quietly accumulated millions of tokens during the recent correction.

Even with the recovery, though, the overall mood around Dogecoin still feels cautious. Some market indicators suggest confidence is improving, while others continue flashing warning signs. So despite the bounce, DOGE hasn’t fully escaped the uncertainty hanging over the broader meme coin market just yet.

Whales Accumulated DOGE While Smaller Wallets Sold

Fresh data from Santiment’s Supply Distribution metric shows that larger Dogecoin wallets took advantage of the recent price dip instead of panicking alongside the crowd. According to the data, whale addresses holding between 10 million and 100 million DOGE accumulated roughly 500 million tokens since May 17.

At the same time, smaller whale groups told a completely different story. Wallets holding between 100,000 and 1 million DOGE, along with those controlling between 1 million and 10 million DOGE, collectively reduced their holdings by around 330 million coins during the same period.

That split is pretty interesting honestly, because it suggests some mid-sized holders may have capitulated during the correction while larger players saw weakness as an opportunity instead. This kind of “buy-the-dip” behavior from major wallets often signals longer-term confidence, even when short-term price action looks shaky.

It doesn’t guarantee an immediate breakout, of course. But continued accumulation from bigger wallets can sometimes create a support cushion underneath the market, especially during periods where retail sentiment starts fading.

Derivatives Traders Still Aren’t Fully Convinced

While whale activity has turned more bullish, derivatives data paints a more mixed and slightly confusing picture. CoinGlass data shows Dogecoin’s long-to-short ratio currently sits around 0.94, hovering near its lowest level in over a month.

Because the ratio remains below 1, it suggests more traders are still betting on downside rather than upside. In simple terms, bearish positioning continues to outweigh bullish bets across the derivatives market, even after the recent recovery attempt.

At the same time, funding rates have improved. DOGE’s OI-Weighted Funding Rate flipped positive earlier this week and currently sits near 0.0082%. Positive funding rates generally mean long traders are paying shorts to maintain positions, which usually reflects improving bullish sentiment underneath the surface.

So the market is sending mixed signals right now. Whales are accumulating, funding rates look healthier, but many derivatives traders still appear hesitant to fully trust the rally. That kind of indecision tends to limit momentum, at least in the short term.

DOGE Holds Key Support While Momentum Stays Weak

From a technical perspective, Dogecoin continues trading in a somewhat neutral-to-bearish structure despite holding above support. DOGE currently sits just above its 50-day Exponential Moving Average near $0.104, which has become the first important support level traders are watching.

However, resistance continues stacking up overhead. The 100-day EMA near $0.106 remains difficult to break, while the much more significant 200-day EMA sits higher around $0.122. Until DOGE can reclaim those levels convincingly, the broader trend still leans weak overall.

Momentum indicators also reflect the uncertainty. The Relative Strength Index is hovering around 49, showing little directional conviction from either buyers or sellers. Meanwhile, the MACD indicator remains slightly negative, hinting that buying momentum exists but still lacks real strength.

If bulls manage to break above the 100-day EMA, DOGE could begin targeting the next resistance area near $0.112, followed by a possible move toward $0.122 if momentum continues improving. But if support near $0.104 and $0.102 breaks down, traders may quickly shift focus toward the deeper support zone around $0.0885 where buyers previously stepped in.

For now, Dogecoin feels caught somewhere between cautious recovery and lingering weakness. Whales clearly see value in the current dip, but derivatives traders still aren’t fully sold on the comeback yet.

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