The price of Dogecoin has collapsed this year, mirroring the performance of other cryptocurrencies. DOGE plunged to a low of $0.1655, down by over 65% from its highest level in December. Will the coin bounce back as signs show that whales are accumulating it?
Whales Are Buying the DOGE Dip
On-chain data shows that whales have continued accumulating Dogecoin amid the price crash.
Data by Santiment shows that whales accumulated over 110 million DOGE coins in the last seven days. These tokens are worth over $17 million, a sign that sophisticated investors expect the meme coin to bounce back.
There are potentially three reasons why these whales are buying the dip. First, Polymarket data shows that the odds that the Securities and Exchange Commission (SEC) will approve a spot DOGE ETF have risen.
Fundamentally, there is no reason why the agency should reject a DOGE ETF. While Dogecoin is classified as a meme coin, it does not significantly differ from Bitcoin. They are both proof-of-work coins with a limited supply and don’t have any staking features. A DOGE ETF may lead to more demand.
Second, Dogecoin is the biggest and oldest meme coin in the industry. As such, it may benefit many investors to move from other newer meme coins like Pudgy Penguins, Fartcoin, and Official Trump, which soared initially and then crashed as insiders sold.
Third, analysts remain highly optimistic about the DOGE price. One analyst on Twitter predicted that the coin would soon jump to $1 after the Stochastic Relative Strength Index (RSI) moved to the oversold level.
Macroeconomic factors also support a positive outlook for the DOGE price. Most analysts believe the US economy is on the verge of a recession or major slowdown. A slowing economy serves as a bullish catalyst for Dogecoin prices, as the Federal Reserve is likely to intervene by cutting interest rates.
READ MORE: Dogecoin Price Prediction as Active DOGE Addresses Plunges
Dogecoin Price Technical Analysis
DOGE whales are buying the dip for technical reasons. The MVRV indicator’s Z score has reached a multi-month low, indicating that the coin is currently undervalued.
The daily chart shows that the Dogecoin price has formed a falling wedge pattern. This is a popular bullish reversal pattern made up of two converging trendlines that slope downward. These two lines are now nearing the convergence point, where breakouts happen.
The Relative Strength Index (RSI) and the MACD indicators have all pointed upwards, indicating the formation of a bullish divergence pattern. Therefore, the Dogecoin price is likely to bounce back and possibly retest its November high at $0.4840, up almost 200% from the current level.
READ MORE: 3 Reasons Why Dogecoin Price May Not Hit $1 in 2025
