The entire meme coin market, including its leader, was annihilated in the past few months due to the ongoing broader crash, which pushed the market capitalization south by over $1 trillion.
Recall that Dogecoin stood close to $0.5 in early December, then peaked above $0.42 in mid-January but slumped to $0.14 on March 11. Even though it now trades close to $0.17, it still means that its price has lost 60% since the January peak and over 65% since the high in December.
Following such a substantial crash, though, many industry observers believe DOGE is primed for a rebound and have outlined several factors that could help the asset recover.
Whales Return and TD Seq
Dogecoin whales have been particularly active during the bull run in November and December but started to dispose of their assets after the subsequent peak. Now, though, they have returned to the scene with multiple large purchases and Ali Martinez highlighted the latest one.
Although this amount is far from the massive accumulations registered a few months ago, it’s still a positive sign that could influence DOGE’s price recovery as it reduces the immediate selling pressure.
The popular analyst also brought up the TD Sequential metric, which shows whether a certain asset has exhausted its move in either direction. In regard to DOGE, he noted that the meme coin is “primed for a bounce” as the 3-Day TD Sequential has flashed a buy signal.
Network Activity and Big Wallets
CryptoPotato reported yesterday that Dogecoin’s active addresses had grown to a four-month high of over 150,000. That was in stark contrast with the numbers registered just a few weeks ago when the number struggled to remain above 100,000. Typically, more activity on a certain network results in better price performance and vice versa.
The network activity on Dogecoin has increased even further since our report and is up to 280,000 such addresses in recent days.
The fourth and last signal in today’s article comes from yesterday’s. In it, we reported that big DOGE wallets, those that own at least a million of the meme coin, had grown by over 1.2% since the start of February. More precisely, this means the addition of 62 new such entities.
