Dogecoin has been on a sharp decline, losing 70% of its value since peaking at $0.48 in December 2024. While some investors have sold in fear, large holders, or whales, have chosen a different path. Instead of exiting, they have doubled down and increased their holdings.
CinemaBoy reports that wallets holding at least one million DOGE have risen by 1.24% since early February. This accumulation happened exactly as prices fell, suggesting that whales see an opportunity rather than a reason to panic. The last time they moved like this, Dogecoin skyrocketed by more than 200% in November 2024. Could history repeat itself?
Whale Accumulation Signals a Possible Dogecoin Rebound
Onchain data from Santiment indicates that Dogecoin’s network activity is heating up. Active addresses have reached a four-month high, a sign of growing interest. When more wallets engage with a cryptocurrency, trading volume often follows. Increased activity could mean retail investors are stepping in, or it could mean long-term holders are buying the dip.
The last major accumulation phase led to a massive rally, and this time, the conditions look similar. If history serves as a guide, Dogecoin could be preparing for another major price move. However, technical indicators will determine whether this is a genuine reversal or another false breakout.
Technical Indicators Suggest a 30% Rally Could Be Ahead
Dogecoin is currently sitting on a critical support level near $0.13, which aligns with a multi-year trendline. The 200-week exponential moving average also supports this level, adding to its strength. A bullish crossover on the Stochastic RSI further reinforces the possibility of an upward move.
If Dogecoin can break through $0.22, it could gain momentum and rally another 30%. Momentum traders often step in when a price clears key resistance levels, adding further buying pressure. The setup suggests a possible surge, but risks remain. If DOGE falls below support, the price could drop to $0.12 before finding new buyers.
What Happens If Dogecoin Fails to Hold Support?
A 70% decline has already tested investor patience, but a further drop could shake confidence even more. If Dogecoin breaks below its support zone, it could enter a deeper downtrend. In that scenario, traders might look for the next support near $0.12. Failing to hold that level could trigger even lower price targets.
Dogecoin’s history shows extreme price swings, making it difficult to predict the next move with certainty. While whales seem confident in a recovery, the broader crypto market sentiment will also play a role. If Bitcoin and Ethereum continue their uptrend, Dogecoin could follow. However, if the overall market weakens, Dogecoin might struggle to gain traction.
Dogecoin’s Future: A Make-or-Break Moment
Dogecoin’s price has tumbled 52.8% over the past three months, yet whales remain confident. Their increased accumulation suggests they see value at current levels. The rise in network activity supports this view, indicating renewed interest in the token.
For a sustained recovery, Dogecoin must hold above $0.13 and break past $0.22. If it succeeds, a 30% rally could unfold, pushing the price toward higher resistance levels. On the other hand, if support fails, Dogecoin could see more downside before finding a new floor.
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Investors watching Dogecoin must decide whether this is an opportunity or another temporary bounce. Whales have placed their bets, but is this the beginning of a new rally or just another short-term fakeout? Time will tell, but for now, all eyes remain on Dogecoin’s next move.
