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- Dogecoin short-term holders are buying despite market weakness.
- On-chain data shows DOGE near long-term support and undervalued levels.
- Holder conviction suggests a potential setup for the next DOGE rally.
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Dogecoin (DOGE) investors are showing quiet confidence despite last week’s sharp sell-off that rattled the memecoin market. While most traders rushed for the exits, a wave of short-term holders (STHs) chose to buy the dip — signaling that belief in the original memecoin hasn’t faded.
Memecoin Market Wipeout Tests Conviction
It’s been a bruising stretch for the memecoin sector. Dogecoin, Shiba Inu (SHIB), and Pepe (PEPE) all dropped more than 20% in the past week, erasing billions in combined value. Even newer favorites like Bonk (BONK) and Floki (FLOKI) couldn’t escape the broader market downturn as traders reduced exposure to high-risk assets.
Yet beneath the surface, buying pressure from STHs hinted at quiet optimism. With DOGE hovering near local lows, some investors appeared to treat the sell-off as an opportunity rather than a warning.
Signs of Stability Emerge
Dogecoin is now stabilizing above long-term support levels, according to recent data from Alphractal. The Cumulative Value Days Destroyed (CVDD) metric — which helps identify whether coins are trading near their long-term value floor — shows DOGE holding steady in the same range that preceded major rallies in the past.
Additionally, the Reserve Risk Indicator remains in the green “accumulation zone.” This means investor conviction is strong even though broader market confidence hasn’t overheated — often a sign that the market is consolidating rather than topping out.
Dogecoin has not yet reached euphoria, and Short-Term Holders are accumulating.
— Joao Wedson (@joao_wedson) October 13, 2025
In December 2024, Doge reached its ATH for the current cycle exactly at the CVDD Alpha — our custom metric for cycle tops, based on Cumulative Value Days Destroyed, which is a highly accurate… pic.twitter.com/KCXhNoahxo
Undervalued and Overlooked?
DOGE’s MVRV Z-Score, a key measure of whether an asset is over- or undervalued, currently sits near historic lows. Historically, these deep undervaluation periods have come right before major bull runs — including the 2017 and 2021 surges.
Also Read: Dogecoin Eyes Nasdaq With $50M House of Doge Deal
If that pattern repeats, Dogecoin’s quiet accumulation phase could eventually fuel its next big move. While near-term volatility remains, long-term holders seem unfazed — and history suggests patience may once again pay off.
Dogecoin’s price may have cooled, but the conviction of its holders hasn’t. With on-chain metrics flashing accumulation signals and valuation models pointing to potential upside, DOGE might be quietly setting up for its next major rally.
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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.
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.
