Dogecoin’s Resurgence: On-Chain Data Signals Critical Accumulation Phase
Following a challenging close to 2025, the broader altcoin market has demonstrated significant vitality, emerging as a primary beneficiary of the recent post-holiday rally. Dogecoin (DOGE), the leading meme coin by market capitalization, has showcased robust performance, experiencing a substantial surge of nearly 24% since the commencement of the new year.
Current on-chain analytics suggest that Dogecoin’s price is situated within a pivotal zone. This strategic positioning could indicate the genesis of an extended upward trajectory for the digital asset over the forthcoming months.
Identifying Key Accumulation Zones for DOGE
On January 3, Alphractal CEO and founder Joao Wedson highlighted on X that Dogecoin has entered what he describes as its most crucial accumulation zone. This assessment is derived from recent shifts observed within the Cumulative Value Days Destroyed (CVDD) Channel indicator.
Understanding the CVDD Channel
The CVDD Channel serves as a sophisticated on-chain metric designed to monitor the movement of aged capital within a specific market, in this instance, Dogecoin. Its primary function is to delineate long-term support and resistance levels by analyzing the flow of older coins across the blockchain.
Wedson elaborated that these CVDD channels incorporate Fibonacci-based levels superimposed on the CVDD curve. This methodology establishes historical price zones where significant market reactions are typically observed. Notably, the blue CVDD lines have historically functioned as robust structural support for Dogecoin’s price.
Historical data reinforces this observation. Dogecoin’s recent ascent towards the $0.15 mark occurred subsequent to its price finding strong support at the initial blue CVDD level. These lower blue levels have consistently acted as reliable price cushions for DOGE.
“The lower CVDD Fibonacci zones frequently align with long-term accumulation phases for Dogecoin. Consequently, it may be an opportune moment to accumulate the meme coin, particularly as its price resides within these critical blue CVDD zones.”
This analysis suggests a strategic window for investors considering long-term positions in Dogecoin.
Dogecoin’s Market Performance and 2026 Outlook
As of this report, Dogecoin’s price hovers around $0.1415, reflecting an increase of over
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