The price of Dogecoin has fallen over the past few weeks, reflecting the overall weakness in the market and a decrease in speculative demand. This adjustment has led to the formation of ascending divergence on the technical chart.
A trend of declining selling pressure can be seen from network data, indicating that DOGE is stabilizing while moving sideways.
Dogecoin whales predict significant recovery
Major Dogecoin holders have shown a bullish stance again towards the end of 2025. Whale addresses holding between 1 billion and 10 billion DOGE have shifted to buying mode, acquiring approximately 1.5 billion DOGE (worth about 185 million dollars) over three days.
This accumulation does not guarantee immediate price increases, but it is a positive factor for Dogecoin prices. Whales' movements tend to suggest long-term positioning rather than short-term. The willingness to buy amidst a weak market indicates confidence that downside risks are limited around current levels.
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Looking at macro indicators, Dogecoin holders are facing a large-scale sell-off phase. The net unrealized profit and loss (NUPL) has fallen to its lowest level in two years, currently indicating around -0.25. The overall network is experiencing significant unrealized losses.
According to past trends, when NUPL drops to around -0.27, a reversal phase for DOGE has occurred. At such levels, selling pressure tends to ease at peak losses. With profit margins dropping to levels seen in October 2023, there is a possibility of stability and a gradual recovery phase forming in the future.
Dogecoin's price is currently forming an upward divergence. Over the past two weeks, the price has made lower lows, while the relative strength index (RSI) has made higher highs. This suggests a weakening of the downward momentum amid continuing price pressure.
If this divergence is confirmed, buying often leads to a trend reversal. If sufficient evidence is shown, DOGE may recover with 0.122 dollars as support. If continuous increases are observed, there is room for a rise up to 0.131 dollars, with the next target being 0.143 dollars.
If this divergence is not confirmed, DOGE will be exposed to downward pressure again. If selling resumes, the price may fall to around 0.113 dollars. If this support is breached, the upward scenario will be invalidated, and Dogecoin may continue to drop to 0.110 dollars or lower.
