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Dogecoin is holding steady above a critical ascending channel, as large investors accumulate, prompting speculation of a potential breakout.
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The resilience shown by DOGE amidst broader market fluctuations illustrates its robust technical support and investor confidence.
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According to a recent analysis by COINOTAG, “With the current on-chain trends, Dogecoin could very well be poised for a rally exceeding past levels.”
Analyzing Dogecoin’s recent price movements reveals a critical junction for investors, as whale activity indicates potential bullish momentum.
Dogecoin tests lower boundary of ascending channel
Currently, on the weekly chart, Dogecoin remains firmly above the lower boundary of its long-term ascending channel. This trendline, established since 2015, has proven to be a crucial support level throughout previous market cycles.
The recent dip brought DOGE’s price down to around $0.17, hovering just above the 0.786 Fibonacci retracement level of $0.18395, a significant area often indicative of an impending rebound should buying interest resurface.
If historical patterns hold, this scenario could signal a move back toward the channel’s mid-point around $0.56 and potentially to the 1.272 Fibonacci extension at $2.73, contingent on a favorable shift in the broader market landscape.
Trends hint at growing confidence
Evidence from on-chain analytics reinforces this positive technical outlook. The Accumulation/Distribution Line reflects a robust accumulation at 20.28 billion DOGE at the time of reporting, indicating that long-term holders are actively acquiring more DOGE as its price stabilizes.
This disconnect between price movement and accumulation generally precedes significant bullish rallies, indicating that buyers are strategically absorbing supply during downturns.
Furthermore, the distribution of large wallets, as highlighted by Santiment, shows sustained demand. Notably, addresses holding between 10 million to 1 billion DOGE have consistently increased their holdings through March, despite a slight decrease in medium-sized wallets (1M–10M DOGE).
This trend indicates that larger investors are setting their sights on potential gains, likely anticipating a broader recovery that could favor speculative assets like Dogecoin.
Source: Santiment
Dogecoin still under pressure
In spite of these long-term bullish signals, DOGE remains constrained beneath both the 50-period and 200-period moving averages on the 12-hour chart, with the 50 SMA currently acting as resistance at approximately $0.176.
While momentum is leaning bearish in the immediate term, reclaiming the $0.18 level could serve as an early indicator of potential reversal strength, particularly if coinciding with increased trading volume and a continuation in the A/D line.
Conclusion
Dogecoin stands at a pivotal moment. The price is maintaining its position above a significant multi-year ascending channel, with large wallets accumulating quietly, suggesting a favorable risk-to-reward ratio for bullish investors.
Nevertheless, sustained upward movement will only materialize with a breakout above the $0.18 resistance level. Should this occur, mid-range targets could be set between $0.27 and $0.56, indicating a possible resurgence in Dogecoin’s price trajectory.
