Dogecoin (DOGE) price has crashed by over 70% after hitting $0.48 in December 2024. Curiously, the memecoin’s richest holders have amassed in the course of the price declines, indicating their confidence in a possible rebound within the coming weeks.
Dogecoin onchain metrics trace at price rebound
Onchain information from Santiment shows that wallets holding at the least 1 million DOGE have elevated by 1.24% since early February, regardless of declining costs. In the meantime, lively addresses have surged to a four-month excessive, suggesting rising community exercise.
Dogecoin addresses holding at the least one million DOGE vs. price. Supply: Santiment
Sometimes, when giant holders accumulate an asset whereas costs decline, it alerts that they see undervaluation and are positioning for a future rebound.
A rise in lively addresses signifies larger engagement on the community—probably reflecting rising retail curiosity.
If this surge in consumer exercise stems from actual adoption reasonably than speculative buying and selling or panic promoting, it might present the onchain basis wanted for a price restoration. The same sample was noticed in the course of the DOGE’s 200%-plus price rally in November.
DOGE is oversold, elevating possibilities of 30% rally
Dogecoin is at present testing a assist confluence comprising a multi-year ascending trendline assist, a stage that has traditionally triggered sturdy bullish reversals and the 200-week exponential transferring common (200-week EMA) at round $0.13.
DOGE/USD weekly price chart. Supply: TradingView
Moreover, the Stochastic RSI, an indicator measuring momentum and overbought/oversold circumstances, reveals a bullish cross within the oversold area (under the 0.30 studying).
This sign usually signifies that promoting strain is weakening. In DOGE’s case, this crossover at low ranges has preceded sturdy price recoveries, notably a 400% price rally in 2024 and 88% features in 2023.
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The primary main resistance stage lies close to $0.22, aligning with DOGE’s 50-week exponential transferring common (50-week EMA; the pink wave) and the March-April 2024 resistance space, as proven under.
DOGE/USD weekly price chart. Supply: TradingView
Nonetheless, if DOGE fails to carry the assist confluence, the bullish setup may very well be invalidated, resulting in a deeper correction towards $0.12, which served as assist within the March-Might 2024 interval.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.
