Dogecoin has plunged over 70% in the past three months, suffering significant losses in the recent crypto market downturn. Despite this decline, some major investors believe the meme coin will rebound soon.

Whales Buy 110 Million DOGE

Prominent crypto analyst Ali Martinez revealed that Dogecoin whales are “betting on a breakout.” In an X post on Tuesday, March 18, Martinez highlighted that investors holding between 1 million and 10 million DOGE have accumulated 110 million DOGE in the past week. 

At current prices, this purchase amounts to $18.5 million. These latest acquisitions follow the massive purchases from the previous week, when whales bought 1.4 billion DOGE worth $224 million and another 1.7 billion DOGE. The increasing accumulation signals strong confidence in Dogecoin’s potential recovery.

Related article: Dogecoin Faces a Critical Price Test: What’s Next for DOGE?

Network Activity Surges

Beyond whale accumulation, on-chain activity has also spiked. On Wednesday, March 19, Martinez noted that Dogecoin’s network showed significant activity, with the number of active addresses rising sharply.

This metric increased by 76%, jumping from an average of 160,000 active addresses last week to 282,500 on Monday, March 17. A rise in active addresses often indicates growing investor interest and could lead to higher demand for DOGE.

Amid these bullish signals, Martinez suggested that Dogecoin might climb to a new all-time high of $2. He based this prediction on an ascending channel observed in the weekly candlestick chart.

Related article: Dogecoin ETF Filing Fuels Optimism as Futures Volume Climbs

Despite these positive indicators, Dogecoin continues to trade sideways, moving just 0.29% lower on the day at $0.1677. Many traders remain cautious, awaiting the Federal Reserve’s interest rate decision later today. The outcome could influence the broader crypto market’s next move.