Dogecoin's price has dropped by over 70% after reaching $0.48 in December 2024. However, large holders continue to accumulate, suggesting a potential recovery.
Dogecoin onchain metrics hint at price rebound
Onchain data from Santiment shows that wallets holding at least 1 million DOGE have increased by 1.24% since early February, despite declining prices. Meanwhile, active addresses have surged to a four-month high, suggesting rising network activity. Typically, when large holders accumulate an asset during price declines, it signals they see undervaluation and are positioning for a future rebound.
DOGE is oversold, raising chances of 30% rally
Dogecoin is currently testing a support confluence comprising a multi-year ascending trendline support and the 200-week exponential moving average (EMA), which have historically triggered strong bullish reversals. The Stochastic RSI, indicating momentum and overbought/oversold conditions, shows a bullish cross in the oversold region, pointing to weakening selling pressure. This signal has historically preceded significant price recoveries, including in 2024 and 2023.
Outlook and potential scenarios for Dogecoin
The first major resistance level lies near $0.22, aligning with DOGE’s 50-week EMA. However, failure to hold the support confluence could invalidate the bullish setup, leading to a deeper correction toward $0.12, which served as support in the March-May 2024 period.
While Dogecoin has seen a significant price drop, metrics suggest potential for a rebound. Large holders' activity and reduced oversold conditions could play a crucial role in the future price movement.
