Dogecoin’s price has fallen in recent weeks, reflecting the overall market weakness and reduced speculative demand. This rebound created a bullish divergence on the technical chart.
This signal is reinforced by improving on-chain cues, suggesting that selling pressure may be losing strength as DOGE stabilizes.
Dogecoin whale expects recovery
Large Dogecoin holders are expressing renewed optimism towards the end of 2025. Whale addresses holding between 100 million and 1 billion DOGE have moved into accumulation mode. These wallets earned approximately 1.5 billion DOGE (equivalent to $185 million) in three days.
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Although this accumulation does not guarantee an immediate upside, it remains constructive for Dogecoin’s price. Whale behavior often reflects long-term positioning rather than short-term trading. The willingness to buy even when markets are weak suggests growing confidence that downside risk may be limited around current levels.
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Macro indicators indicate a deep capitulation among Dogecoin holders overall. Net unrealized gains and losses (NUPL) fell to a two-year low. The current reading is around -0.25, reflecting unrealized losses spread across the network.
Historically, DOGE reversals have appeared when NUPL approaches the -0.27 threshold. At such levels, selling pressure often saturates as losses peak. Profits have fallen to October 2023 levels, suggesting that the conditions may be ripe for stabilization and a gradual recovery phase.
DOGE price prepares for rebound
Dogecoin price is currently forming a bullish divergence. In the past two weeks, the price trend has hit even lower lows. Meanwhile, the Relative Strength Index rose to new highs, indicating that downside momentum is waning despite continued price pressure.
This divergence often occurs before the trend reverses as buyers regain control. If confirmed, DOGE could regain support at $0.122. At the same time, a sustained move above this level could pave the way to $0.131, with $0.143 being the next upside target.
If the divergence cannot be confirmed, DOGE will be exposed to new losses. As a result, the price could fall towards $0.113 if selling resumes. Losing this support will invalidate the bullish setup and a bearish situation could pull Dogecoin below $0.110.
