Dogecoin (CRYPTO: DOGE) is poised for a significant price correction as the cryptocurrency market experiences substantial volatility.

What Happened: According to recent market data, on-chain activities indicate optimism among Dogecoin fans, with accumulations continuing to rise.

According to data from Santiment, wallets holding at least 1 million Doge tokens have seen a remarkable surge. The new development marks a slight recovery, as wallets holding large amounts of Dogecoin remained stagnant following the global cryptocurrency market crash. Active wallet addresses are also at a 4-month high.

Since the beginning of February, 62 addresses holding over 1 million Doge have been recorded. Additionally, more than 150,000 Doge addresses have been active daily, the highest number recorded since mid-November.

Following the global crypto market retracement, Dogecoin, like other rival memecoins, has traded down over the past two months. However, the influx of new wallet addresses signals a rise in Dogecoin’s utility and smart money, further positioning the asset for an upward reversal ahead of perceived market stability.

Dogecoin continues to trade sideways despite clearing weekly losses. The price of Dogecoin showed a bearish trend on the hourly chart, as the asset closed the previous day with one of the biggest losses. Bulls failed to sustain momentum after a bullish close from Monday, which could lead to further downward pressure on the asset.

Over the past 60 days, Doge has lost 60% of its price value. However, weekly losses have been successfully cleared. The asset dropped by more than 5% in the past 24 hours but has quickly made an upward correction, with daily gains reaching up to 6%. At the time of writing, Doge is trading at $0.1728.