Dogecoin PoS Proposal Fuels Breakout Buzz as Whales Trim Holdings
Dogecoin whales have reduced their holdings from nearly 17% to just over 16% of the supply, reflecting a broader risk-off mood in crypto markets. Futures open interest has plunged from $5.35 billion in July to $3.54 billion, while daily active addresses fell from over 500,000 in June to under 50,000 in late August. Despite this weakness, Dogecoin maintains crucial support at $0.21, backed by the 100-day and 200-day EMAs. Project Sakura, a new Dogecoin Foundation initiative, proposes moving the network from proof-of-work to proof-of-stake to bolster security and attract institutional backing. On the charts, DOGE trades within a symmetrical triangle between $0.165 and $0.25. A decisive breakout could target $0.44 (+170%), whereas a breakdown risks a slide to $0.18–$0.16. Traders should watch support levels and PoS developments for signs of a major trend shift.
Neutral
Whale sell-off and dwindling active addresses signal bearish pressure on Dogecoin, yet key support at $0.21 and the looming PoS upgrade inject bullish potential. The symmetrical triangle setup suggests an imminent breakout in either direction. In the short term, traders may face heightened volatility around $0.21 support. Long term, Project Sakura’s switch to proof-of-stake could attract new capital and stabilize the network, mirroring past bullish catalysts like Ethereum’s merge. These mixed signals warrant a neutral stance until clear breakout confirmation.