Over the last few weeks, Dogecoin (DOGE) profits have plunged to a two-year low, sparking concerns among holders. However, recent developments suggest a potential rebound might be on the cards. With bullish divergence forming on technical charts and whales soaking up millions worth of DOGE, this could be the turning point for the popular cryptocurrency.
Whale Accumulation Indicates Long-Term Optimism
Large-scale holders of Dogecoin, often referred to as ‘whales,’ are sending an optimistic signal to the market. In late December 2025, wallet addresses holding between 100 million and 1 billion DOGE ramped up their positions by acquiring 1.5 billion DOGE—an investment valued at $185 million. Such behavior often reflects long-term confidence, as whales typically accumulate during dips to prepare for future price growth.
Although this accumulation doesn’t guarantee an immediate rally, it’s a constructive sign indicating that downside risk might be limited. If you’re new to observing crypto market behavior, whale activity is often a reliable indicator of potential market stabilization and upcoming shifts.
Technical Indicators Hint at Stabilization
Besides whale activity, technical charts are highlighting a potential trend reversal. A bullish divergence has emerged as the price has posted a lower low while the Relative Strength Index (RSI) indicates a higher high. This phenomenon often signals weakening downside momentum, preparing for buyers to take control.
Historically, Dogecoin reversals have occurred when its Net Unrealized Profit and Loss (NUPL) metric nears the -0.27 threshold. As of now, NUPL hovers around -0.25, suggesting that selling pressure could be subsiding and markets are finding stabilization. This metric is significant for traders and holders looking for entry points or signs of recovery.
What’s Next for Dogecoin?
If the bullish divergence forms fully and support is held above $0.122, Dogecoin could see the path cleared for recovery. Immediate targets include $0.131 and eventually, $0.143. On the flip side, failure to confirm the trend reversal could lead to a dip toward $0.113 or even lower levels like $0.110.
For potential DOGE investors or crypto enthusiasts looking to track the latest market trends, tools like CoinTracking help in analyzing your crypto investments and discovering optimal buying or selling opportunities. This tool is an essential product for both new traders and seasoned investors.
Final Thoughts
Despite Dogecoin’s recent struggles, these developments hint at a market poised for adjustment. If you’re looking to get involved in cryptocurrency, always remember to do your own research and consider using portfolio analysis tools to make informed decisions. The crypto market is volatile, but informed strategies can help mitigate risks.
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