Dogecoin has faced a steady decline over the past month, mirroring trends in the broader memecoin market. However, recent on-chain data and technical indicators point to potential recovery signs for the popular cryptocurrency. Whale wallets and active addresses on the Dogecoin network have surged, suggesting growing confidence in the asset despite its short-term downturn.

Whale Accumulation and Increased Network Activity

Santiment’s latest data reveals significant positive activity in Dogecoin’s on-chain metrics. Whale wallets, or those holding at least 1 million DOGE, have been accumulating steadily since February 2025. The number of such wallets has increased by 62, a 1.24% rise. This accumulation by large holders, often considered “smart money,” suggests growing confidence in Dogecoin’s long-term outlook, even as its price has recently faced downward pressure.

Alongside whale accumulation, Dogecoin has seen a sharp increase in active addresses. Daily active addresses, which reflect user engagement, have surged past 150,000, the highest level since mid-November 2024. This uptick in user interaction suggests that more people are involved in the Dogecoin network, which could indicate potential future demand and price movements.

Network data from IntoTheBlock supports this growth, with new addresses up by 102.4%, active addresses increasing by 111.32%, and zero-balance addresses growing by 155.58% over the past week. These metrics confirm that Dogecoin is attracting more users and that network activity is at its highest level in several months.

Technical Indicators Point to Possible Breakout

In addition to the positive on-chain metrics, technical analysis also shows promising signs for Dogecoin. Market analyst Trader Tardigrade has pointed out the formation of a doji candlestick pattern on Dogecoin’s weekly chart. A doji pattern occurs when the opening and closing prices of an asset are nearly identical, indicating indecision in the market. While this pattern is neutral by itself, it can signal a potential trend shift when observed in the broader market context. Notably, a similar doji pattern preceded Dogecoin’s massive 240% surge in Q4 2024.

Another key technical indicator is Dogecoin’s potential breakout from a multi-month falling wedge. A falling wedge typically signals that the price is consolidating before a potential upward move. According to analysis from TradingView, maintaining the current support level is critical for Dogecoin to achieve further gains. The analysis sets three price targets: the first at $0.4638, the second at $0.5534, and the final target at $0.6542. If Dogecoin reaches these targets, it could represent an impressive 281% increase from its current price.

Dogecoin Price Movements and Market Sentiment

Despite the surge in whale wallets and network activity, Dogecoin’s price has faced some recent declines. Over the past 24 hours, the price has dropped by 2.1%. However, the cryptocurrency has seen a 4.9% increase over the last seven days, indicating a short-term recovery. In contrast, its 14-day performance remains bearish with a 14% drop.

One of the most notable aspects of Dogecoin’s price action is its strong support level at $0.15. Despite the fluctuations in the market, this support level has held firm, suggesting that there may be underlying stability in the asset. As long as Dogecoin continues to maintain this support, there’s potential for future price growth, especially if the positive whale accumulation and increased network activity continue.

Conclusion

While Dogecoin has faced a tough market environment recently, there are significant bullish signals emerging. Whale wallets have been accumulating, active addresses have surged, and key technical indicators suggest a potential breakout. Although the short-term market trend remains negative, these signs of growing confidence in the asset could indicate that Dogecoin is poised for recovery in the coming months. Investors will need to keep an eye on these developments, as Dogecoin’s price could experience substantial upside if the positive trends continue.