Analysts Predict Dogecoin Rebound if Price Holds Above $0.16, Potential Rally to $2.74 or Higher
Key Takeaways:
- Dogecoin’s active addresses surged by 270% in the past 24 hours, reaching 264,000.
- Whales accumulated 1.7 billion DOGE within three days, signaling potential price recovery.
- Analysts identify critical demand zones at $0.16 and $0.13 as key support levels.
Will Dogecoin Recover After a Sharp Drop?
Despite a 9% decline today amid a broader crypto market correction, Dogecoin is nearing a crucial support level at $0.16. Analysts believe that holding above this threshold could set the stage for a strong rebound.
Crypto analyst Ali Martinez highlighted this key support level, stating that if Dogecoin maintains its position above $0.16, it could gain momentum for a significant price surge. Currently, DOGE is trading at $0.1726, with a 115% spike in daily trading volume, surpassing $2.01 billion. Meanwhile, open interest has dropped 12.91% to $1.45 billion, and 24-hour liquidations have surged to $21 million, according to Coinglass data.
Previously, Martinez suggested that if DOGE bulls successfully defend the $0.16 support, the price could rally toward $2.74 or even $6.24 in a bullish scenario.
Dogecoin Network Sees Surge in Activity
Despite market turbulence, on-chain data shows promising signs for DOGE. In just 24 hours, the number of active addresses on the Dogecoin network skyrocketed by 270%, jumping from 71,750 to 264,000.
Furthermore, Dogecoin whales have been accumulating heavily, with 1.7 billion DOGE added to their wallets over the past three days. This suggests that major holders are positioning for a potential breakout, reinforcing confidence in the meme coin’s long-term prospects. Additionally, the total number of Dogecoin wallet addresses has reached an all-time high, signaling continued interest in the asset.
Key Demand Zones to Watch
Crypto analyst “TheGift94” has outlined potential buying demand zones that could act as crucial support levels for DOGE. According to a TradingView analysis, the first support zone at $0.20 was breached as Dogecoin dropped 13% yesterday, closing at $0.1678.
The next critical support levels to monitor are:
- $0.16 – A key threshold where a price reversal could begin.
- $0.13 – A lower support level that could stabilize DOGE if selling pressure continues.
As DOGE hovers around these demand zones, investors are watching closely for a potential rebound that could fuel the next rally. 
