Dogecoin millionaires are buying dips as DOGE price eyes 30% rally
Dogecoin’s price recently plummeted over 70%, dropping from a high of $0.48 in December 2024 to current levels, igniting various reactions across the crypto market. Despite its steep decline, the behavior of substantial DOGE holders has highlighted a stark divergence in market sentiment. According to reports, these wealthy investors have been accumulating Dogecoin throughout the downturn, indicating a resilient belief in the cryptocurrency’s potential for recovery.
On-chain metrics provide intriguing insights. Data from Santiment indicates a 1.24% rise in wallets holding at least 1 million DOGE since early February. This accumulation among large holders, combined with a notable spike in active addresses reaching a four-month high, points toward increased network engagement. Such activity might signal a resurgence of interest among retail investors and potentially foreshadow a forthcoming rebound in Dogecoin’s price.
In cryptocurrency markets, when large holders buy during price declines, it often demonstrates their optimism about an asset’s undervaluation and future upside. If the current user engagement translates into genuine adoption—rather than speculative trading—this could establish a robust support network, laying the groundwork for a price recovery reminiscent of the dramatic 200%-plus rally seen in November.
The technical landscape for Dogecoin is also noteworthy. Currently, DOGE is testing critical support levels. Analysts are observing a multi-year ascending trendline and the 200-week exponential moving average (EMA) near the $0.13 mark—historically a significant pivot point that has led to formidable bullish reversals in the past. Additionally, the Stochastic RSI reveals a bullish crossover in the oversold territory, typically a precursor to diminishing selling pressure. Such indicators have historically aligned with significant rebounds, like the impressive 400% increase in early 2024.
Resistance levels around $0.22 have been identified, coinciding with the 50-week EMA. Should Dogecoin fail to sustain its current support levels, there is a risk of a deeper correction toward the $0.12 threshold, which had previously established support during the March-May 2024 period.
As the cryptocurrency market adjusts, the evolving narrative around Dogecoin serves as a tantalizing reflection of broader trends. The composition of its holder base, combined with emerging on-chain metrics, may not only point to a potential price recovery but also serves as an important case study in market resilience amid volatility.
