Dogecoin is back in the spotlight after a notable increase in whale activity. Large investors bought approximately 480 million dogecoin in just 48 hours, a move that often indicates confidence in a potential trend reversal.
At the same time, charts from well-known analysts show that the coin may be starting a new, volatile phase.
Dogecoin Whales Strike Around Local Bottom #
Between December 2 and 4, the total amount of dogecoin held by wallets containing one to one hundred million tokens increased from approximately 28 billion to 28.48 billion. The data, shared by analyst Ali Martinez on Santiment, shows that large players became active during a price dip.
The purchases followed a recovery from fourteen to fifteen cents after an earlier decline. This suggests whales may have bought in around a local bottom. Despite this uptick, dogecoin is still trading two percent lower than the previous day and two percent lower than last week.
Important Resistance Zone Around Twenty Cents #
Glassnode data shows that approximately 11.72 billion dogecoin were purchased between 20.2 and 20.4 cents. According to analysts, this price range forms a strong resistance zone: many investors who entered at higher levels are now underwater and could sell if the price returns to this range.
Ali Martinez emphasized on X that twenty cents remains the crucial threshold. Only when the dogecoin price convincingly breaks above this region can sentiment sustainably shift.
Rising Network Activity, But No Direct Price Impact #
On the network front, dogecoin is surprisingly strong: in early December, 71,589 active addresses were registered, the highest level since September. This indicates growing user activity, even as the price remains under pressure.
The interest is partly fueled by new ETF initiatives from 21Shares and Grayscale, which have filed proposals for spot dogecoin funds. However, this is not yet reflected in the price, as inflows to large wallets have remained low since November.
Macro Chart Shows Familiar Cycle Structure #
A long-term chart from Trader Tardigrade shows that dogecoin is following a pattern strongly resembling the phase before the explosive 2021 rally. The coin has been forming higher lows along an ascending trendline for years, interspersed with long consolidation periods.
“$Doge/2-month #Dogecoin is starting its roller coaster moves 🚀” - Trader Tardigrade (@TATrader_Alan) December 4, 2025
According to the analyst, dogecoin may be at the beginning of a “roller coaster phase” where volatility increases.
While the pattern matches previous cycles, dogecoin must first break through the resistance zone around twenty cents before a larger upward movement can be confirmed.
Outlook: Price Recovery or Waiting Game? #
The combination of growing network activity, whale accumulation, and a technical pattern resembling previous bull runs strengthens interest in dogecoin. However, the price remains bound by strong resistance levels, and uncertainty persists about the impact of potential ETFs.
For now, traders are mainly watching the zone around twenty cents. A convincing breakout could set the tone for a new phase in the dogecoin market, but as long as confirmation is lacking, caution remains advised.