The price of Dogecoin (DOGE) has remained flat despite increasing coin accumulation, as shown by the rising Money Flow Index (MFI).
This suggests that DOGE continues to trade within the horizontal channel and that buying pressure may not be strong enough yet to create enough momentum to cause an upside breakout.
Dogecoin Demand Needs More Power
DOGE's MFI measures the inflow and outflow of funds into an asset and has been trending upward in recent days. A rising MFI is generally a sign of increasing demand for the asset.
However, DOGE’s horizontal move suggests that this demand has not been strong over the past few weeks, making a rally above the upper resistance level of the horizontal channel at $0.11 difficult.
The decline in whale activity supports this outlook, with on-chain data showing a gradual decline in the number of whale transactions exceeding $100,000 and $1 million per day.
Additionally, net inflows from large DOGE holders have plummeted by over 112% over the past month, suggesting a high level of coin distribution among investors who own at least 0.1% of the coin’s circulating supply.
Read more: How to buy Dogecoin (DOGE) and all the information you need
DOGE Price Prediction: 14% Price Drop Possible
With the whale activity being low, it may be difficult for DOGE to attempt to break above the resistance level . If it fails to break above the resistance level this time, the DOGE price will continue its trend towards the $0.1 support level.
If DOGE bulls fail to defend this critical level, the downtrend could continue and the value of DOGE could fall by another 14%, trading at the low of 0.08 on August 5.
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However, if demand strengthens, the coin will successfully break above the resistance line and target the 3-month high of $0.15.
