Dogecoin price dropped further after failing to rise above the $0.1880 zone. This pushed the crypto below several support levels, testing the $0.1680 zone, reaching a low of $0.1685.

This downturn also pushed investor sentiment back into fear territory despite April’s bullish run.

However, some analysts believe this might only be a temporary setback. Crypto analyst Astronomer highlighted that Dogecoin may have hit bottom after being rejected from $0.18.

The analyst noted similarities between current market conditions and those in October 2024, which preceded a 500% rally to a local peak of $0.5. Based on these fundamentals, Astronomer predicts that DOGE could potentially rally even higher this time.

Technical indicators show a bullish divergence on the chart, particularly in the Relative Strength Index (RSI). This suggests a potential reversal pattern may be forming.

For a bullish continuation, DOGE needs to break above the $0.1780 resistance level. This could potentially send the price toward $0.1850 and eventually to the $0.1880 level. If momentum continues, the next major target would be the $0.2 mark.

Whale Activity Signals Potential Strength

Recent blockchain data reveals some interesting movements among large holders. A total of 100 million DOGE tokens (worth approximately $17.5 million) were added to whale holdings, signaling possible accumulation by major investors.

This accumulation is supported by increased exchange outflows, suggesting large-scale withdrawals from trading platforms like Binance, Bitfinex, and Huobi. Such behavior typically signals investors moving coins to private wallets for longer-term holding rather than immediate trading.

However, not all metrics paint a bullish picture. Trading volume has decreased by 33.5% over the past 24 hours, though this could be attributed to typical weekend trading patterns.

Looking at the supply distribution, wallets holding between 100-1 million DOGE showed selling pressure in early April, while the 1 million-10 million and 100 million-1 billion DOGE holder groups have shown some buying activity.

This suggests that smaller holders were taking profits during the initial rally, while larger institutions or funds might be accumulating at lower price levels for a potential long-term move.

The market capitalization has grown from $21 billion to $26.4 billion since April 6th. Interestingly, the realized cap (representing the value of all coins valued at the last price they moved on-chain) has shrunk from $21.5 billion to $21.3 billion during the same period.

This discrepancy between market cap and realized cap suggests that some of the past month’s gains may be driven by speculative activity rather than fundamental value growth.

On the downside, if Dogecoin fails to climb above the $0.1740 level, it could face another decline. Initial support is near $0.1685, with major support at $0.1600. A break below this support could potentially send the price toward $0.1550 or even $0.1450.

Daily Active Addresses remain at just 3.4% of what they were during the November peak, indicating subdued market sentiment and activity compared to previous highs.

While long-term holders appear to be holding steady rather than selling, increased buying pressure and activity will be necessary for DOGE to launch a substantial rally. Until these metrics improve, the meme coin may continue to experience price volatility in the near term.

The first major target for a potential recovery would be breaking the resistance at $0.2, followed by $0.27, with a final target for a 100% increase lying above $0.33.