Dogecoin Whales Accumulate 1.24% More, Signaling Potential 30% Price Surge

Dogecoin, a cryptocurrency that has seen a significant decline in value, has recently shown signs of recovery. The value of Dogecoin has dropped by 70% from its peak of $0.48 in December 2024. However, despite this decline, the largest holders of Dogecoin have been increasing their investments. On-chain data reveals that wallets containing at least 1 million DOGE have increased by 1.24% since February. This accumulation pattern suggests that major investors believe Dogecoin is undervalued and anticipate a potential price increase in the near future.

Despite the fluctuating performance of the Dogecoin market, the cryptocurrency's network activity has surged, with active addresses reaching a four-month high. If this increase in engagement is not solely due to widespread selling and indicates genuine user adoption, it could create a strong foundation for a Dogecoin price recovery. Some analysts point to previous accumulation events that have historically preceded substantial DOGE rallies, predicting a potential price surge exceeding 30% in the near term.

The number of large DOGE holders is on the rise, a pattern that has historically preceded every Dogecoin price recovery. Records indicate that in early February, 62 new wallets holding a minimum of 1 million DOGE were created, marking a 1.24% growth. On March 11, major investors purchased 1.4 billion DOGE in a single day, fueling speculation about an upcoming price hike. Historically, whale accumulations have led to supply crunches, which in turn drive up prices due to higher demand and limited supply. This scenario mirrors past Dogecoin bull cycles, which followed substantial accumulation by significant DOGE holders.

Dogecoin’s falling price has led to oversold conditions, which could signal an imminent reversal. DOGE is currently testing a multi-year ascending trendline support level around $0.13. Historically, the price has rebounded sharply from this support, and the nearby 200-week EMA strengthens the possibility of a price bounce. Additionally, the Stochastic RSI indicator, used to identify when an asset is overbought or oversold, has shown a bullish crossover within this oversold area. Prior similar signals preceded major price recoveries; for example, in 2024, DOGE rallied by 400%, and in 2023, it rose by 88%. A repeat of these patterns could bring Dogecoin a near-term 30% rally, potentially leading it to surpass crucial resistance near $0.22.

Beyond retail investors and large holders, the broader market sentiment surrounding Dogecoin is shifting. Analysts suggest that stable conditions in the cryptocurrency market could lead to another substantial price increase for DOGE. Demand might increase if a Dogecoin exchange-traded fund (ETF) receives approval within the regulatory framework. Institutional money could then find its way into the DOGE ecosystem. Moreover, active DOGE addresses now exceed 150,000 per day—figures unseen since mid-November 2024—which supports this bullish trend. These figures indicate increasing user engagement and suggest greater adoption of Dogecoin may be imminent. This means Dogecoin could establish itself as a long-term, valuable digital asset. Ongoing interest by large entities, plus broader cryptocurrency developments, could also lead to sustained DOGE growth.

The Dogecoin market performance, together with strong on-chain signals, hints at a substantial rally taking place. Millionaire investors are increasing their holdings, the network shows increased activity, and the documented actions of whales point to smart money preparing for a Dogecoin price recovery. While risks remain and further drops can occur if support breaks down, bullish technical signs alongside increasing adoption of Dogecoin offer a promising setup for DOGE growth. If past trends hold, Dogecoin may soon recover lost value, thus benefiting those who bought during the recent price decrease.