Dogecoin Price Consolidates Despite Growing Money Flow Index (MFI)

Dogecoin Price Consolidates: Is a Breakout Imminent?

This growing Money Flow Index (MFI) indicates that Dogecoin’s (DOGE) price has been muted despite a rise in currency accumulation. It appears that there may not yet be enough purchasing pressure to cause a breakout in DOGE as it is still trading inside a horizontal channel.

An increase in the MFI typically denotes a surge in asset demand. Even so, it appears that this demand has not been particularly substantial based on DOGE‘s sideways movement over the last three weeks. The rally beyond the horizontal channel’s top line, which creates resistance at $0.11, becomes difficult as a result.

Whale Activity Declines: Can Dogecoin Hold $0.10 Support Level?

Such an opinion is supported by falling whale activity. Whale transactions of more than $100,000 and $1 million are gradually declining on a daily basis, according to on-chain data. A high volume of coin distribution among investors who own at least 0.1% of the circulating supply is shown by the fact that DOGE’s large holders’ netflow has decreased by more than 112% during the last month.

Doge’s effort to break over the resistance level would be difficult given the low whale activity. The meme coin‘s price will drift toward support at $0.10 if this level is not tested. In contrast, the decline will continue if bulls are unable to hold this crucial level, and DOGE’s value might drop a further 14% to trade at its low of $0.08 on August 5.

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