In the past few months, Dogecoin (DOGE) has experienced a significant decline, sliding from a local high of $0.48434 to $0.14280, a drop of over 70%. This downward trend has almost erased the astonishing 350% gain achieved in the fourth quarter of 2024. With the price decline, market sentiment has also cooled, causing investor confidence to drop to a yearly low.

According to Santiment Feed data, the popularity rating of DOGE sharply dropped from 3.861 in November 2024 to 0.935, showing a significant decline in market enthusiasm for this cryptocurrency. Meanwhile, the discussion volume on social platforms plummeted from 3,206 to 212, reflecting a notable decrease in interest and discussion among market participants.

Replaying history? Emotional low point or forming a contrary signal

History seems to be repeating itself, as similar emotional lows have appeared several times before the price rebound of Dogecoin (DOGE), and the current market state may hint at potential reversal signals. Notably, a large number of Dogecoin 'whales' seem to have sensed the opportunity in advance and are starting to position themselves actively.

Data shows that on March 10, holders of 100 million to 1 billion DOGE significantly increased their holdings by 1.4 billion DOGE, worth over $224 million. More notably, the day before, these whales had crazily bought 1.7 billion DOGE while investing over $300 million. This series of actions indicates that a large amount of capital is flowing into the DOGE market, potentially providing strong momentum for a future rebound. This concentrated buying behavior by whales is often seen as an important signal of market reversal, perhaps indicating that DOGE is about to enter a new round of upward trends.

$2 or a new target? Key support levels determine the trend

If DOGE can hold the key support level of $0.16, it may challenge its historical high of $2. This support level intersects with the 78.6% Fibonacci retracement level and the bottom of a multi-year ascending channel, further solidifying this bullish expectation.

Recently, the tariff policy set by the Trump administration has triggered market volatility, even enhancing economic panic, which may interfere with DOGE's short-term trends.

In summary, DOGE is at a historic turning point, with whale buying and emotional low points possibly signaling the onset of a new bull market; a $2 target may just be a matter of time.