Profit from Dogecoin drops to a 2-year low but shows signs of recovery

Dogecoin’s recent price decline reflects the overall weakness of the market and a decrease in speculative demand. This correction has laid the groundwork for a bullish divergence to appear on technical charts.

This positive signal is further reinforced by favorable on-chain developments, indicating that selling pressure is gradually weakening as DOGE shows signs of stabilization.

Dogecoin Whales Expect a Recovery

Large investors holding Dogecoin have shown clear optimism towards the end of 2025. Whale addresses, holding between 100 million and 1 billion DOGE, have significantly increased their accumulation. In just three days, this wallet group bought approximately 1.5 billion DOGE, equivalent to $185 million.

While this accumulation activity does not guarantee an immediate price rally, it remains a positive sign for Dogecoin’s prospects. Whales’ actions often reflect long-term investment strategies rather than short-term trading. Their decision to buy during a weak market suggests growing confidence that the downside risk of DOGE may be limited at current price levels.

Whale Dogecoin holdings | Source: Santiment Macroeconomic indicators also show widespread investor capitulation in the Dogecoin market. The unrealized profit and loss ratio (NUPL) has fallen to its lowest level in two years, currently oscillating around -0.25, reflecting widespread unrealized losses.

History indicates that strong reversals in DOGE often occur when NUPL approaches the -0.27 threshold, a point where selling pressure peaks and the market begins to rebalance. With profits returning to October 2023 levels, conditions are gradually aligning for Dogecoin to enter a phase of stabilization and recovery.

Dogecoin NUPL | Source: Glassnode

DOGE Price Ready for a Breakout

Currently, Dogecoin’s price is forming a clear bullish divergence. Over the past two weeks, the price has consecutively made lower lows, but the Relative Strength Index (RSI) has recorded higher highs, signaling that downward momentum is weakening despite ongoing selling pressure.

This divergence often signals a trend reversal when buyers start to gain the upper hand. If confirmed, DOGE could retake the support level at $0.122. Maintaining above this level would open the door to move towards the $0.131 zone, with the next target at $0.143.

DOGE Price Analysis | Source: TradingView Conversely, if the divergence is not confirmed, DOGE could face a new downward move. In that case, the price might retreat to $0.113 if selling pressure increases again. Losing this support level would weaken the bullish outlook and could push Dogecoin down to $0.110 or lower amid negative market developments.