Dogecoin millionaires are buying the dip as the price heads towards a 30% increase.

The price of Dogecoin (DOGE) has dropped more than 70% after reaching a peak of 0.48 USD in December 2024. Of note, the largest DOGE holders are actively accumulating more during the price decline phase, reflecting confidence in the potential for recovery in the coming weeks.

Onchain indicators suggest the potential for price recovery of Dogecoin

Onchain data from Santiment shows that the number of wallets holding at least 1 million DOGE has increased by 1.24% since the beginning of February, despite the downward price trend. At the same time, the number of active addresses on the Dogecoin network has reached its highest level in four months, indicating a significant increase in network activity.

Dogecoin address holding at least one million DOGE versus price | Source: SantimentTypically, when large investors accumulate more assets during a price decline, this may signal that they consider the coin to be undervalued and are preparing for a future recovery.

The increasing number of active addresses also indicates a growing level of interaction on the network - a positive sign of interest from individual investors returning.

If this increase comes from real-world application activity rather than speculative trading or panic selling, it could be a solid onchain foundation for a price recovery. Previously, a similar pattern was observed in the over 200% price increase of DOGE in November 2024.

DOGE is in oversold territory, opening up a 30% recovery opportunity

Weekly price chart DOGE/USD | Source: TradingViewCurrently, Dogecoin is testing an important support area, including:

• The long-term uptrend has been maintained for many years.
• The 200-week EMA( moving average is around 0.13 USD, a strong support level that has triggered many price reversals in the past.

In addition, the Stochastic RSI indicator - a measure of momentum and overbought/oversold conditions - is showing a bullish crossover in the oversold zone ) below the 0.30( level, a signal often indicating weakening selling pressure.

In history, similar low-level intersections have led to strong recoveries of DOGE, including: )

• 400% by 2024.
• 88% by 2023.

Resistance Level and Potential Scenario

Dogecoin billionaires are buying the dip as prices head towards a 30% increase! ](https://img.gateio.im/social/moments-422f760c3238e019c536a92d35f982c8)Weekly price chart DOGE/USD | Source: TradingViewThe first important resistance level for DOGE is near $0.22, coinciding with:

• 50-week EMA(: Exponential Moving Average of 50 weeks.
• Resistance zone during the period of March - April 2024.

However, if Dogecoin fails to hold the current confluence support area, the bullish scenario may be invalidated, leading to a deeper correction towards the $0.12 area - a zone that previously acted as support from March to May 2024.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research thoroughly before making decisions. We are not responsible for your investment decisions.

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Mr. Teacher

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