Dogecoin Could Reboot Soon: Rising Wallets Signal Accumulation Around Key Zones

Dogecoin has been stuck in a steep decline since early October, sliding along a downward channel that has kept sellers firmly in control. The memecoin king has fallen more than 14% in the past month and even slipped under the long-watched $0.20 resistance level. Despite this persistent weakness, on-chain activity appears to have picked up, hinting that the backdrop may not be as one-sided as the chart suggests.

Dogecoin’s Crucial Price Zones Guide Near-Term Direction

Crypto analyst Ali Martinez pointed out on Thursday that $0.20 remains the major resistance Dogecoin must reclaim. He explained that roughly 11.72 billion Dogecoin were accumulated around that area, making it a decisive level for sentiment. With the token hovering near $0.13, the market is still struggling to work its way back toward that hurdle. If buyers manage to regain that zone and convert it into new support, Dogecoin could revisit the kind of rally seen in September, when it briefly touched $0.30 and posted one of its strongest moves of the year.

Providing a wider reading, analyst BitGuru noted that DOGE continues to hold above a crucial support base around $0.13. He noted that previous bull runs often began from this region and added that the token has now settled back into its mid-range, suggesting it could test $0.18 if momentum picks up. At this stage, quiet accumulation tends to build, laying the groundwork for the next upward move.

Large holders have also returned, accumulating an estimated 480 million Dogecoin as overall confidence steadies across the market. This lines up with rising activity in derivatives, where daily futures turnover has climbed to around $2.85 billion. Reinforcing this trend, Martinez reported that active wallets jumped to 71,589—the highest reading since September—suggesting that participation is widening again.

Technical Indicators Show Ongoing Pressure

Even with these improving signals, Dogecoin’s technical structure still leans bearish. The price remains far below both the 50-day and 100-day simple moving averages, showing that downward pressure dominates on short- and long-term views. The 50-day SMA continues to slope lower and sits under the 100-day SMA, reinforcing the negative trend. With both averages pointing down, the chart indicates that any attempt to revisit $0.20 would first require a convincing break above the 50-day SMA, which remains a key obstacle for buyers trying to regain control.

Dogecoin has also taken a two-track approach into traditional finance, with Grayscale and Bitwise each launching their own spot ETFs linked to the token. However, activity around the funds has stayed muted, with a cumulative total net inflow of $1.88 million over the first two weeks, indicating that engagement with the ETFs remains modest.