Podcast Discussion: Deep Dive Into This Article.
Dogecoin (DOGE) has seen a sharp price decline, dropping over 70% after reaching $0.48 in December 2024. However, recent on-chain data suggests that large holders are accumulating DOGE despite the downturn, signaling confidence in a potential recovery.
In this article, we explore key on-chain metrics, price action, and technical indicators that could hint at Dogecoin’s next move.
Whale Accumulation Continues Despite Price Decline
- Data from Santiment reveals that wallets holding at least 1 million DOGE have increased by 1.24% since early February, even as prices fell.
- This accumulation trend suggests that major holders view the current price levels as an opportunity, expecting a future rebound.
Rising Network Activity Signals Growing Interest
- The number of active Dogecoin addresses has surged to a four-month high, indicating increased engagement on the network.
- Higher activity often reflects growing retail interest and broader adoption, which could contribute to price stability and future gains.
Key Technical Support Levels in Play
- DOGE is currently testing a multi-year ascending trendline support, a historically strong level that has triggered previous bullish reversals.
- The 200-week exponential moving average (EMA), near $0.13, is another key level that could act as a strong support zone.
Stochastic RSI Points to a Potential Reversal
- The Stochastic RSI, a momentum indicator, has formed a bullish crossover in the oversold region (below 0.30).
- Similar patterns in the past have preceded strong price recoveries, including a 400% rally in 2024 and an 88% gain in 2023.
Resistance and Bearish Scenario
- The first major resistance level is near $0.22, aligning with the 50-week EMA and previous resistance zones from early 2024.
- However, if DOGE fails to hold its current support levels, a deeper correction toward $0.12 is possible, which previously acted as support between March and May 2024.
Conclusion
Dogecoin’s price action remains uncertain, but key on-chain and technical indicators suggest that a recovery could be on the horizon. Whale accumulation, rising network activity, and strong technical support levels all point toward a potential rebound. However, failure to hold these supports could lead to further downside.
Traders and investors should keep an eye on on-chain trends and price movements to determine DOGE’s next direction.
This article reflects the opinions of the publisher based on available information at the time of writing. It is not intended to provide financial advice, and it does not necessarily represent the views of the news site or its affiliates. Readers are encouraged to conduct further research or consult with a financial advisor before making any investment decisions.
