Dogecoin (DOGE) Shows Potential Recovery Signs Despite Recent Price Decline

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.

Dogecoin price has faced a steady decline over the past month, mirroring trends in the broader memecoin market. However, recent on-chain data and technical indicators suggest that the cryptocurrency could be showing signs of recovery.

As reported by Santiment, there has been a significant increase in the number of "whale" wallets, defined by those holding at least 1 million DOGE, which have been accumulating since February 2025.

Specifically, the latest data shows that the count of such wallets has risen by 62, or 1.24%, signaling that large holders, often considered "smart money," are becoming more bullish on Dogecoin in the long term, despite the short-term price downturn.

This is further supported by the sharp uptick in active addresses on the Dogecoin network. Capitalizing on the network activity, blockchain analytics firm IntoTheBlock's data highlights a substantial increase in several key metrics over the past week.

New addresses on the Dogecoin network have surged by a massive 102.4%, showcasing a significant influx of new users to the cryptocurrency.

Furthermore, active addresses, which denote users who are engaging in at least one transaction, have witnessed an 111.32% explosion, highlighting a level of engagement not seen in several months.

Moreover, the number of zero-balance addresses, typically indicating users who are no longer holding any Dogecoin in their wallets, has also seen a noteworthy increment of 155.58%.

This triple-digit growth in three major network metrics speaks volumes about the recent surge in Dogecoin activity.

Its price has faced some recent setbacks, with a 24-hour decrease of 2.1%. However, the cryptocurrency has seen a 4.9% increase over the last seven days, suggesting a short-term recovery.

In contrast, its 14-day performance remains bearish with a 14% drop.

However, in the bigger picture, Dogecoin price has encountered a multi-month falling wedge, which is a common technical analysis pattern that signals a period of consolidation before a potential breakout.

According to analysis from TraderTardigrade, who is a technical analysis contributor for Benzinga, a doji candlestick pattern has formed on Dogecoin’s weekly chart. A doji pattern occurs when the open and close prices of an asset are nearly identical, which can indicate indecision in the market.

While a doji pattern is typically neutral, it can signal a potential trend shift when viewed in the broader market context. Notably, a similar doji pattern preceded Dogecoin’s massive 240% surge in Q4 2024.

Another key technical analysis indicator to watch is whether Dogecoin can breakout of the multi-month falling wedge that it has been forming. A falling wedge is typically a sign that an asset is consolidating ahead of a potential upward move.

According to the 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 manages to reach these targets, it could represent an impressive 281% increase from its current price.