Dogecoin Nears Critical Support as Whale Buying and Active Addresses Surge

A Dogecoin price rebound may be imminent as the asset nears a critical support level.

Dogecoin has been locked in a downtrend since mid-December 2024 amid broad market uncertainty. Notably, it has fallen 65% from a high of $0.48434 to as low as $0.16534, nearly erasing all of its Q4 2024 gains. This decline has now brought the asset near a critical line of defense, according to one leading analyst.

Dogecoin Rebound Imminent?

In an X post on Monday, March 10, market analyst Ali Martinez highlighted that Dogecoin was nearing critical support at $0.16.

The $0.16 support level aligns with the bottom of a multi-year ascending channel on the memecoin’s weekly candlestick chart and the 0.786 Fibonacci retracement level.

Martinez noted that holding above this level could signal a “strong rebound.”

Optimism that a rebound is likely has been stoked by key on-chain metrics.

For one, whales on the network have been on a buying spree in the past few days. On Sunday, March 9, Martinez shared Santiment Feed data showing that investors with holdings above 1 billion DOGE had added over 1.7 billion DOGE (worth nearly $300 million at current prices) 72 hours prior. It is important as the activities of these investors typically precede significant market moves.

At the same, network interest appears to be on the rise. Also on Sunday, Martinez highlighted that the number of active addresses on the network surged 270% from 71,750 to 264,000 in the 24 hours prior.

Dogecoin is not without catalysts amid pending spot exchange-traded fund applications. Still, bulls will likely want to see some clarity emerge in current geopolitical conditions, creating an avenue of relief for risk markets like crypto.