Dogecoin has faced heavy downward pressure amid the ongoing market correction, but recent on-chain data suggests the meme coin could be gearing up for a strong recovery. Despite the bearish sentiment, growing whale accumulation and a surge in user activity hint at potential bullish momentum ahead.
Whales Continue to Load Up on DOGE
According to Santiment data, wallets holding at least one million Dogecoin have been steadily increasing. This uptick signals growing confidence among institutional investors and major holders, suggesting they anticipate a price surge in the near term.
Additionally, Dogecoin’s daily active addresses have spiked to a four-month high, surpassing 150,000 transactions per day. This increase underscores the growing adoption of Dogecoin for financial transactions and potential real-world utility.
Technical Indicators Highlight Key Price Levels
Currently, Dogecoin is testing a crucial support zone near $0.167, aligning with the 0.618 Fibonacci retracement level and a key ascending trendline. Crypto analyst Ali Martinez emphasizes that maintaining this level is critical for sustaining bullish momentum.
Historically, Dogecoin has bounced back from similar price ranges, leading to notable price rallies. If strong buying pressure persists, DOGE could break out toward $0.35, solidifying an uptrend and attracting further market interest.
On the flip side, a breakdown below this support level could push Dogecoin toward $0.11, extending the bearish phase and weakening short-term sentiment in the meme coin sector.
Market Liquidity and Liquidation Trends
Dogecoin’s price action remains closely tied to overall market liquidity, particularly in response to liquidation events. Current data from Coinglass reveals that short liquidations spike when DOGE makes unexpected upward moves.
Conversely, long liquidations occur when prices dip, triggering volatility of $43.14 million to $86.29 million. These liquidation points will play a crucial role in determining whether Dogecoin sustains an uptrend or faces continued downward pressure.
The Road Ahead for DOGE
With increasing whale activity, growing adoption, and critical technical support, Dogecoin’s next major price move could be highly significant. Investors and traders are closely watching whether DOGE can hold its support level or if further downside risks emerge.
The coming days will be crucial for Dogecoin’s trajectory—will it reclaim bullish momentum, or is another correction on the horizon? Stay tuned for updates as the situation unfolds.
