Dogecoin (Doge) prices fell over 70% after reaching $0.48 in December 2024. Interestingly, Memecoin’s wealthiest holders have accumulated during the price drop, showing confidence in the potential for rebounds in the coming weeks.
Dogecoin Onchain metrics suggest price rebound
Santiment’s Onchain data shows that wallets holding at least 1 million DOGE have increased by 1.24% since early February, despite prices falling. Meanwhile, active addresses have skyrocketed to four months high, suggesting an increase in network activity.
Dogecoin holds Doge vs. price of at least 1 million people. Source: Santiment
Usually, when large holders accumulate assets while prices are falling, they can see that they see undervalued and positioned for future rebounds.
An increase in active addresses indicates a higher network involvement.
If this surge in user activity is due to actual adoption rather than speculative trading or panic sales, it could provide the on-chine foundation needed to recover the price. A similar pattern was observed during the Doge price rise of more than 200% in November.
Doge is oversold, increasing the chances of 30% meetings
DogeCoin is currently testing support confluences, including multi-year uptrend line support. This has caused a historically strong bullish reversal, causing a 200-week index moving average (200-week EMA) at around $0.13.
Doge/USD weekly price chart. Source: TradingView
Furthermore, the stochastic RSI, an indicator that measures momentum and excess sales/sold status, shows bullish crosses in the sold area (below 0.30 reads).
This signal usually indicates weakening of sales pressure. In the case of Doge, this low-level crossover precedes a strong price recovery, particularly a 400% price rise in 2024 and an 88% profit in 2023.
Related: Crypto Market is looking at “a tactical retreat, not a reversal.”
The initial major resistance level is near $0.22, along with Doge’s 50-week exponential moving average (50-week EMA, red waves) and the March-April resistance area of April 2024.
Doge/USD weekly price chart. Source: TradingView
However, if Doge fails to maintain support confluence, bullish setups could be disabled, leading to a deep fix to $0.12, which served as support during the March 2024 period.
