The meme coin market, including Dogecoin, experienced a significant downturn in recent months, mirroring a broader market crash that wiped out over $1 trillion in market capitalization. Dogecoin, which traded near $0.5 in early December and peaked above $0.42 in mid-January, plummeted to $0.14 on March 11. While currently trading near $0.17, it still represents a 60% loss from its January peak and over 65% from its December high.

Despite this substantial drop, several factors suggest a potential Dogecoin rebound.

Whale Activity and Technical Indicators

Increased activity from Dogecoin whales, who significantly reduced their holdings after the market peak, is a positive sign. Recent large purchases, as highlighted by Ali Martinez, indicate renewed interest. While not on the scale of previous accumulations, this reduced selling pressure could contribute to price recovery.

Martinez also cited the TD Sequential indicator, which suggests a potential price bounce. The 3-Day TD Sequential flashed a buy signal, further supporting the possibility of a recovery.

Network Activity and Large Wallet Holdings

Dogecoin's network activity has surged, reaching a four-month high of over 150,000 active addresses, a significant increase from the previous weeks. This increased activity, now exceeding 280,000 active addresses in recent days, is a bullish indicator often correlated with positive price action.

Furthermore, the number of large Dogecoin wallets (holding at least one million DOGE) increased by over 1.2% since the beginning of February, adding 62 new entities. This signifies growing accumulation by significant holders.

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