With the broader two-month crypto market retracing underway, Dogecoin analysis from Santiment indicates signs of recovery. According to the study, even as the token’s price went down, there has been a growing number of wallets holding at least 1 million DOGE coins.
Santiment data further shows that these wallets have risen by 1.24% since the start of February. Besides, the cryptocurrency has active addresses at a four-month high, with over 150,000 active addresses daily—the most since the middle of November. Such a scenario hints at a possible accumulation phase in progress.
Dogecoin Wallets
These developments suggest that Dogecoin’s market could be at a turning point, gaining momentum once the broader crypto market stabilizes. As a result, analysts are particularly focused on the rising number of active addresses, as it usually correlates with increased interest and network activity.
DOGE’s Funding Rate Points to Continued Market Interest
Dogecoin’s OI-Weighted Funding Rate has seen several fluctuations, with a noticeable increase between late January and early February, peaking at just over 0.015%. This coincided with a rise in Dogecoin’s price to $0.43. Afterward, the funding rate declined and stabilized, reflecting the price correction.
DOGE OI-Weighted Funding Rate
Another uptick in early March followed minor price fluctuations, with Dogecoin stabilizing around $0.17. This stability reflects a key market behavior: buyers are paying a premium to short-position holders to keep their long positions open.
Such actions usually suggest a strong belief in the token’s future performance, pointing to bullish sentiment in the market. Despite brief negative funding periods in February, the funding rate has mostly remained positive since mid-January, indicating sustained long-term interest in Dogecoin.
Dogecoin DOJI Pattern: A Signal of Market Change?
From a technical point of view, Trader Tardigrade has brought attention to an important signal in Dogecoin’s (DOGE) weekly chart. The analyst notes that the recent weekly candle closure resulted in a DOJI pattern, which is usually regarded as an indicator of market indecision.
However, if a downtrend preceded such a pattern, a reversal to an uptrend might be underway. Tardigrade noticed that a comparable DOJI occurred right off the bat of Dogecoin’s previous rocket ride, and with the latter being much more compelling, this pattern becomes much more meaningful. If history repeats itself, the analyst predicts a surge toward the $1 mark for Dogecoin.
