Dogecoin Millionaires Accumulate 1.24% More as Price Drops 70%

Dogecoin (DOGE) has experienced a significant price decline, dropping over 70% from its peak of $0.48 in December 2024. Despite this downturn, the wealthiest holders of the memecoin have been actively accumulating DOGE during the price drops, signaling their confidence in an impending rebound. This accumulation trend is evident from onchain data, which shows that wallets holding at least 1 million DOGE have increased by 1.24% since early February, even as prices have fallen. Additionally, active addresses on the Dogecoin network have surged to a four-month high, indicating heightened network activity and potential retail interest.

Historically, when large holders accumulate an asset during price declines, it often signals their belief in the asset's undervaluation and positions them for future gains. The increase in active addresses suggests growing engagement on the network, which could be driven by real adoption rather than speculative trading or panic selling. This pattern was observed during DOGE’s 200%-plus price rally in November, where similar onchain activity preceded a significant price recovery.

Currently, Dogecoin is testing a support confluence that includes a multi-year ascending trendline support and the 200-week exponential moving average (200-week EMA) at around $0.13. This level has historically triggered strong bullish reversals. Additionally, the Stochastic RSI, an indicator measuring momentum and overbought/oversold conditions, shows a bullish cross in the oversold region. This signal typically indicates that selling pressure is weakening and has preceded strong price recoveries for DOGE in the past, including a 400% price rally in 2024 and 88% gains in 2023.

The first major resistance level for DOGE lies near $0.22, aligning with the 50-week exponential moving average (50-week EMA) and the March-April 2024 resistance area. If DOGE fails to hold the support confluence, the bullish setup could be invalidated, leading to a deeper correction toward $0.12, which served as support in the March-May 2024 period. However, the current onchain metrics and technical indicators suggest a potential 30% rally for DOGE, driven by the accumulation of wealthier investors and increasing network activity.

This strategic buying by Dogecoin millionaires reflects a bullish sentiment towards the cryptocurrency, despite recent market volatility. Their actions indicate a belief in the long-term potential of DOGE, supported by its growing acceptance and use cases. As the market continues to evolve, the confidence of these wealthy investors could serve as a positive indicator for Dogecoin's future performance, potentially driving its price higher in the coming months.