The renaissance of Dogecoin: the increase in wallets indicates accumulation around key areas
17:12 ▪ Reading time of 4 minutes
Dogecoin has been stagnating in a strong decline since early October, sliding down a descending channel that has kept sellers in check. The king of memecoins has fallen by more than 14% in the last month and has even dropped below the closely watched resistance level of $0.20. Despite this persistent weakness, on-chain activity seems to have intensified, suggesting that the situation may not be as one-sided as the chart indicates.
In short
Dogecoin is struggling to reclaim the resistance level of $0.20, which remains crucial for reversing the current downtrend.
Approximately 11.72 billion Dogecoin were previously accumulated at nearly $0.20, making it a decisive area for market sentiment.
Active wallets increased to 71,589, reaching their highest level since September as participation expands.
Crucial price zones of Dogecoin guide the short-term direction
Cryptocurrency analyst Ali Martínez noted on Thursday that $0.20 remains the main resistance level that Dogecoin needs to reclaim. He explained that approximately 11.72 billion Dogecoin have been accumulated in this area, making it a key level for sentiment. With the token hovering around $0.13, the market still struggles to get closer to this obstacle. If buyers manage to reclaim this area and turn it into a new support level, Dogecoin could revive the rally of September, when it briefly touched $0.30 and recorded one of its biggest gains of the year.
