Dogecoin (DOGE) has always been known for its high volatility, often experiencing sharp price fluctuations. However, the recent downturn in the coin price has not deterred large investors, also known as whales. Over the past week, whale activity has been notable, with large holders increasing their total DOGE holdings, despite a significant price decline. This behavior raises important questions about the future of DOGE’s price and its potential for recovery.

Whale Accumulation Amidst Price Decline

Between March 3rd and March 21st, Dogecoin’s price dropped by 24%, falling from $0.220 to $0.168. This steep decline might have led many retail investors to consider exiting the market, but the opposite was true for whales. Research has shown that whales holding between 1,000,000 and 10,000,000 DOGE increased their total holdings from 10.38 billion to 10.45 billion DOGE during the same period. This marks an accumulation of over 120 million DOGE during the price downturn.

Whale accumulation during bearish periods is often seen as a sign of market confidence. When large holders buy during dips, it typically indicates that they believe the asset is undervalued and that a price recovery could be imminent. This strategic accumulation could absorb sell-offs, mitigate deeper declines, and help establish a price floor. As a result, retail investors may gain confidence in the stability of the market, potentially triggering more participation and driving the price higher in the process.

The Role of Whale Activity in Stabilizing the Market

The trend of whale accumulation could also play a key role in stabilizing DOGE’s price. While the coin has seen its price decline, the consistent buying activity from large investors could help prevent the price from falling further. This buying pressure could be the factor needed to stabilize DOGE and set the stage for a potential price recovery in the future.

Breaking through key resistance levels will be critical for DOGE’s next move. The price currently faces resistance near $0.182 and $0.191. If DOGE can break above these levels, it could ignite a new bullish phase, confirming that whales’ strategic moves are beginning to influence the broader market. Such a rally would depend on maintaining momentum and ensuring that whale activity continues to bolster the market’s stability.

Price Volatility and Retail Participation

One of the key metrics to consider when analyzing DOGE’s recovery prospects is its volatility. DOGE’s one-day price volatility peaked in November 2024 at 0.125, but it has since stabilized, registering a volatility figure of 0.008 by March 22, 2025. This stabilization could indicate that speculative swings are reducing, which may be a precursor to a period of renewed accumulation. Such a phase could allow DOGE to recover in a more gradual and sustainable manner.

Retail participation has also been on the decline, with active addresses dropping from 7.02 million in November 2024 to 482,000 by March 2025. This suggests that many retail investors have pulled back, possibly due to the volatility in the market. However, if whales continue to accumulate DOGE, it could create the conditions for renewed retail engagement. Large transactions often correlate with an increase in network activity, which could attract more buyers and further strengthen DOGE’s price action.

Conclusion

Despite a 24% price drop in recent weeks, Dogecoin’s whales have remained active in accumulating the asset, which suggests a long-term outlook for the token. This accumulation during a market downturn could help stabilize DOGE’s price, create a price floor, and potentially fuel a rebound if key resistance levels are broken. With continued whale activity and renewed retail participation, DOGE could be on track for a recovery, especially if market sentiment shifts in its favor.