Dogecoin posted a modest gain of around 2% on Monday, trading near $0.086 and remaining above a critical support area that analysts believe could play a major role in the asset’s next major market move.
Recent technical and on chain data suggest that Dogecoin has entered an important accumulation zone, a region that has historically served as the foundation for significant long term price advances.
Strong Demand Emerging Around Current Levels
Crypto analyst Ali Martinez noted that Dogecoin has spent much of its history moving through lengthy consolidation periods within broad trading channels. These phases typically reduce volatility, redistribute supply among investors, and often precede larger bullish trends.
Currently, DOGE is trading above the $0.081 level, which represents an important midpoint support area within a long term parallel channel that has remained intact since 2021.
Martinez highlighted data from the UTXO Realized Price Distribution metric, commonly known as URPD, to explain the significance of this level. The metric tracks the prices at which circulating coins last changed hands.
According to the data, more than 30 billion DOGE were last transacted around $0.081, creating one of the largest concentration zones of investor activity on the network. This cluster is viewed as both a psychological and structural support level because a large number of holders established positions near that price.
Whale Activity Signals Growing Confidence
Adding to the bullish case, large investors appear to be increasing their exposure.
Over the past week, whale wallets reportedly accumulated more than 200 million DOGE, suggesting continued demand around current prices despite broader market uncertainty.
Such accumulation often indicates that major holders view the area as attractive for long term positioning.
Key Levels to Watch
Rather than attempting to predict exact market bottoms, Martinez advocates a gradual accumulation strategy focused on two primary price zones.
The first area sits at $0.081, where the URPD data shows significant historical buying activity. The second is near $0.058, which marks the lower boundary of Dogecoin’s multi year trading channel.
Under his outlook, there are two possible paths forward.
If buyers continue defending the $0.081 support zone, Dogecoin could stabilize and begin moving toward higher levels within its broader channel structure, supported by ongoing whale accumulation.
However, if the asset closes below $0.081 on a weekly basis, it could enter a deeper correction phase, with the next major support area located near $0.058.
Additional Indicator Points to a Potential Bottom
In a separate assessment, Joao Wedson argued that Dogecoin may already be approaching a market bottom.
His view is based on the CVDD Signal, an on chain indicator that has historically identified major turning points for DOGE.
According to Wedson, previous instances where Dogecoin approached or briefly traded beneath this indicator were often followed by strong recoveries. He added that another significant signal could emerge if the meme coin falls below the $0.08 level.
While short term volatility remains possible, both technical and on chain metrics suggest Dogecoin is trading within a zone that has attracted substantial long term interest, making it a closely watched asset as traders look for signs of the next major trend.#crypto#cryptpnews https://coinsignals.net https://t.me/coinsignalpublic
