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Dogecoin (DOGE) has faced a significant setback amid the broader crypto market correction, with its price dropping over 9% to test critical support at $0.16. However, recent on-chain developments suggest that DOGE could be gearing up for a strong rebound as whale activity and active addresses surge.
DOGE Price Outlook: Key Support Levels in Focus
Prominent crypto analyst Ali Martinez has pointed out that maintaining a position above $0.16 is crucial for Dogecoin’s price trajectory. Failure to hold this level could trigger further declines, while a strong defense by bulls could pave the way for a sharp recovery.
As of press time, DOGE is trading at $0.1726, reflecting a 9.29% intraday drop. The meme coin’s daily trading volume has surged 115% to over $2.01 billion, signaling heightened market activity. Meanwhile, open interest has decreased by 12.91% to $1.45 billion, and 24-hour liquidations have spiked to $21 million, according to Coinglass data.
Martinez has previously suggested that if DOGE holds above the $0.16 support level, it could spark a rally toward $2.74, with an ambitious long-term target of $6.24.
On-Chain Activity Signals Accumulation
Despite the recent downturn, bullish indicators are emerging. The number of active DOGE addresses has surged by 270% in the past 24 hours, jumping from 71,750 to 264,000. Such a dramatic spike suggests renewed network engagement, often a precursor to price momentum shifts.
Additionally, whale activity has intensified, with large holders accumulating approximately 1.7 billion DOGE in the past 72 hours. This accumulation hints at strategic positioning by institutional players, reinforcing optimism about a potential price rebound. Furthermore, Dogecoin wallet addresses have reached an all-time high, highlighting sustained investor interest.
Crucial Demand Zones for DOGE
According to pseudonymous analyst “TheGift94,” DOGE faces key support levels at $0.16 and $0.13. The meme coin recently lost the $0.20 support, adding pressure to these zones. If buying momentum builds around these levels, a reversal could be in play.
With strong whale accumulation and on-chain signals pointing to increased activity, Dogecoin could be on the verge of a significant comeback, provided it holds crucial support levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Dogecoin Price Poised for $6.24 Surge if Key Support Holds – Analyst
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
