Can Dogecoin Price Rebound to $2 as Whale Activity and Trading Volume Spike?

Highlights: 

• Dogecoin price drops 5% to $0.17 despite a spike in trading volume.
• A crypto analyst has highlighted a potential rebound to $2 if the crucial support level at $01.6 holds.
• With technical indicators showing oversold conditions, the bulls could ignite a buy-back campaign, rebounding above resistance zones. 

Dogecoin price has tanked 5% in the past 24 hours, testing its crucial support zone at $0.16. Despite the plunge, its daily trading volume has spiked over 122% to $2.17B, indicating intense market activity. Moreover, on-chain activity suggests that the positive momentum for DOGE could resume soon amid a 270% surge in active addresses over the last 24 hours. Also, the DOGE whale activity has surged, indicating big players are buying the dips, thereby hinting at a potential rebound soon.

Popular crypto analyst Ali Martinez has highlighted a critical support level for DOGE as it approaches the lower boundary of its current price channel. According to Martinez, maintaining a position above $0.16 is essential for the cryptocurrency to sustain momentum and potentially fuel a strong rebound to $2

All eyes on #Dogecoin $DOGE! If it holds this level at $0.16 and bounces, a move to $2 could be next! pic.twitter.com/pq2Xc4dsmH

— Ali (@ali_charts) March 10, 2025

On the other hand, the largest whales on the Dogecoin network have reportedly accumulated 1.7 billion DOGE over the past 72 hours. This massive accumulation suggests that major players could be positioned for the next big move, underscoring growing activity and interest in the meme coin.

The largest whales on the #Dogecoin $DOGE network have accumulated 1.7 billion DOGE in the last 72 hours, potentially positioning for the next big move! pic.twitter.com/G8vCHKNvMF

— Ali (@ali_charts) March 9, 2025

Dogecoin Price Outlook

Dogecoin price is testing a crucial support zone between $0.16 and $0.17. A significant bounce from this area could signal a bullish reversal, while a breakdown below $0.16 may lead to further downside. Meanwhile, the daily chart highlights how this level has historically influenced price action, reinforcing its importance for upcoming movements.

The Dogecoin price daily chart illustrates a persistent downtrend within a falling wedge channel, with the price consistently forming lower highs and lower lows. Currently, the market price is $0.17, hovering below both the 50-day and 200-day MAs. The 50-day MA remains below the 200-day MA, reinforcing the bearish sentiment.

Additionally, the price is trading below both moving averages, signalling continued selling pressure. Meanwhile, the key resistance level could be located at $0.19, while major support sits at $0.16. If the price continues to struggle against the MAs and fails to establish a bullish breakout, the lower support region may be tested in the coming sessions.

On the other hand, if the bulls manage to push the price above the moving averages and sustain momentum, a potential upward move toward the $0.19, $0.22, and $2 resistance levels could be on the horizon. 

Technical Indicators Show a Potential Rebound Soon

A closer look at the Relative Strength Index (RSI) current reading at 33.19 shows intense selling pressure. However, its position in the undervalued region may cause the bulls to initiate a buy-back campaign, causing a rebound. 

A breakout from the falling wedge channel may indicate a shift in the Dogecoin price trend, drawing more buyers to the market. Volume activity remains moderate, suggesting a lack of strong buying interest at this stage. Traders should closely monitor price action around the current level to determine whether a rebound or further decline is likely, as a breakdown below $0.16 could trigger a deeper bearish continuation.