Dogecoin Bulls Smell $1.30 As On-Chain Data Turns Red-Hot
Overview
Dogecoin is currently trading near $0.15, with various technical and on-chain indicators suggesting a healthier market structure compared to the previous bear phase. Analysts have started making bullish predictions, indicating a potential upward target for Dogecoin.
Current Market Conditions
Despite Dogecoin’s current price hovering around $0.15, analysts have pointed out that the market indicators are more favorable than they were during the last bear market. A trader named Cryptollica shared a long-term monthly chart of Dogecoin, highlighting the Mayer Multiple—a metric that assesses market conditions based on moving averages. The Mayer Multiple is currently at 0.66005, which is significantly below the spikes above 5 seen during previous market peaks in 2017 and 2021. This suggests that Dogecoin is not in an overheated state, which is often associated with major market tops.
Additionally, Cryptollica referenced an Alphractal chart that illustrates the number of days Dogecoin has spent at a loss. Historical data indicates that during previous cycles, extended periods of losses were observed, particularly around 2014-2015 and after the 2021 market unwind. Currently, the metric shows a decline in the number of long-suffering holders, indicating a potential reset phase that often precedes market advances.
Strengthening On-Chain Data
Recent on-chain data indicates a resurgence in Dogecoin’s network activity. Analyst Ali Martinez noted a significant increase in active addresses, reporting 71,589 active addresses—the highest spike since September. Prior to this spike, the number of active addresses had been fluctuating between 45,000 and 47,500, while the price of Dogecoin was on a downward trend. The surge in active addresses suggests a broadening participation in the Dogecoin market, rather than a movement driven solely by price changes.
Martinez also highlighted notable whale activity, reporting that large holders acquired 480 million Dogecoin within a 48-hour period. This activity comes after a decrease in holdings among large addresses from about 35.6 billion DOGE in mid-October to below 28 billion by late November. However, as the price began to recover from $0.14 to $0.15, whale holdings increased again, indicating a renewed phase of accumulation among large investors.
A further analysis from Martinez indicated a significant resistance level at $0.20, where a large volume of 11.72 billion Dogecoin was accumulated. This resistance is marked by a dense band of holdings that could affect price movements as the market approaches this level.
Impact on the crypto market
- Dogecoin’s current market structure appears healthier than in previous bear phases, suggesting potential for upward movement.
- The Mayer Multiple indicates that Dogecoin is not in an overheated state, which could lead to more stable price behavior.
- A decrease in the number of holders at a loss suggests a potential reset phase, which has historically led to price increases.
- The spike in active addresses signals increased market participation and interest in Dogecoin.
- Significant whale accumulation indicates renewed confidence among large investors, which could support price stability and growth.
- The presence of a well-defined resistance level at $0.20 may create challenges for upward price movement, depending on market absorption of supply.
Updated: 12/5/2025, 10:26:27 AM
