While Dogecoin has seen its price drop sharply—falling over 70% since hitting $0.48 in December 2024—on-chain data suggests that the wealthiest holders remain undeterred.
Large DOGE holders, often referred to as Dogecoin millionaires, have been actively accumulating during the price downturn, a behaviour that analysts interpret as a sign of confidence in an imminent recovery.
According to data from Santiment, wallets holding at least 1 million DOGE have increased by 1.24% since early February, even as prices continued to decline. Additionally, the number of active addresses on the Dogecoin network has surged to a four-month high, indicating a notable uptick in network engagement.
This combination of whale accumulation and increased address activity has historically preceded major rallies. Similar patterns were observed during Dogecoin’s massive 200%+ rally in November 2024, when early accumulation by large holders set the stage for a rapid price surge.
Technical analysts also highlight Dogecoin’s current oversold conditions, drawing comparisons to its past price reversals. If this surge in on-chain engagement reflects genuine adoption rather than short-term speculation, it could provide the foundation for a sustainable rebound.
Some analysts are now eyeing a potential 30% price rally in the coming weeks as accumulation continues and broader market conditions stabilize.
Key Technical Indicators Suggest 30% Upside for Dogecoin
Technical analysts closely monitor Dogecoin’s price action as it approaches a significant support confluence zone that has historically triggered strong bullish reversals. DOGE is currently testing support near $0.13, aligning with two key technical levels:
- A multi-year ascending trendline has repeatedly served as a foundation for major price rebounds.
- The 200-week Exponential Moving Average (EMA), a long-term indicator widely used to gauge market trends and momentum.
Adding to the bullish case, the Stochastic RSI, a momentum oscillator that measures overbought and oversold conditions shows a bullish crossover in the oversold region (below the 0.30 level). This signal indicates that downward pressure is waning, and a potential reversal could be on the horizon.
Notably, similar technical setups in the past have preceded substantial price recoveries. For instance, a comparable crossover in 2024 preceded Dogecoin’s 400% price rally, while a similar setup in 2023 led to an 88% gain.
Given the convergence of these indicators, analysts believe Dogecoin could be poised for a 30% upside, possibly pushing the price toward the $0.17-$0.18 range in the short term, especially if broader market sentiment continues to stabilize.
Dogecoin Shows Resilience as Memecoin Sector Faces Sharp Correction
Dogecoin’s recent stability starkly contrasts the broader memecoin market, which has endured a significant sell-off over the past few weeks.
Data shows that the Memecoin Index, which tracks the performance of major meme tokens, has plunged nearly 90% from its recent highs, reflecting widespread investor profit-taking and shifting market sentiment.
Popular tokens such as Shiba Inu (SHIB), PEPE, FLOKI, BONK, $TRUMP, and $MELANIA have all seen their combined market value fall drastically, with prices dropping to less than one-tenth of their peak levels.
This sharp correction follows months of explosive gains fueled by renewed retail enthusiasm, social media-driven hype, and a broader crypto market uptrend.
However, the memecoin sector’s inherent lack of strong fundamentals has left it vulnerable to volatility. As broader market conditions cooled, speculative assets like meme tokens bore the brunt of investor sell-offs.
Quick Facts:
- Dogecoin’s price has dropped over 70% since its December 2024 peak of $0.48, but large holders continue accumulating.
- On-chain data shows wallets holding 1 million DOGE or more have increased by 1.24% since early February.
- Active addresses on the Dogecoin network have surged to a four-month high, indicating rising engagement.
- Analysts highlight oversold conditions and whale accumulation as signals of a possible 30% price rebound in the coming weeks.
