Dogecoin (DOGE) has seen a sharp decline in 2024, dropping over 70% from its December high of $0.48 to its current price of $0.1645. Despite the downturn, onchain data suggests that major DOGE holders are accumulating, hinting at a potential price recovery in the coming weeks.
Whales Accumulate DOGE as Network Activity Surges
Onchain data from Santiment reveals that Dogecoin wallets holding at least 1 million DOGE have increased by 1.24% since early February. Historically, such accumulation during price declines indicates that large investors see DOGE as undervalued and are positioning for a future rebound.
š¶š Dogecoin, like most meme coins, have been hammered during the 2-month crypto-wide retrace. However, we recommend keeping an eye on the rising level of wallets holding at least 1M $DOGE, which has recovered during the price dump. Active addresses are also at 4-month highs. pic.twitter.com/v4Vx5ifmQv
— Santiment (@santimentfeed) March 17, 2025
Additionally, Dogecoinās active addresses have surged to a four-month high, reflecting increased network engagement. This uptick in user activity could signal rising retail interest, potentially laying the groundwork for a bullish reversal. A similar trend was observed before DOGEās 200%+ rally in November 2023, suggesting history might repeat itself.
Technical Indicators Support a Potential DOGE Rebound
Dogecoin is currently testing a key support zone, comprising a multi-year ascending trendline and the 200-week exponential moving average (EMA) near $0.13. This level has historically triggered strong bullish reversals, adding to optimism about a potential rally.
Moreover, the Stochastic RSI, a momentum indicator, has formed a bullish cross in the oversold regionāan indication that selling pressure is weakening. Previous instances of this signal preceded DOGEās 400% surge in 2024 and an 88% gain in 2023.
DOGE Price Targets: $0.22 or $0.12?
If Dogecoin maintains its current support level, its first major resistance lies near $0.22, aligning with the 50-week EMA and previous resistance zones from March-April 2024. Breaking above this level could fuel a stronger recovery.
However, failure to hold support could lead to further declines toward $0.12, a crucial level that previously acted as support in early 2024.
Also Read: Dogecoin (DOGE) Price Drops, But Surging Address Activity Signals Potential Rebound
While Dogecoinās price decline has been significant, increasing whale accumulation and rising network activity suggest growing confidence in a rebound. If historical patterns hold, DOGE could be on the verge of a 30% recovery, making it a key asset to watch in the coming weeks.
Disclaimer:Ā The information in this article is for general purposes only and does not constitute financial advice. The authorās views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
