‘Dead Meme’ or Major Opportunity? DOGE Is Flashing The Same Signal That Preceded Its Biggest Rallies

Dogecoin (DOGE) suffered a fresh decline of over 5% on Wednesday amid continued selling pressure. However, the OG meme coin is trading at a level that has historically served as an accumulation zone, as flagged by a largely overlooked setup based on its CVDD (Cumulative Value Days Destroyed) Channel model.

According to Alphractal, the CVDD Channel is a thermodynamic floor model that estimates an asset’s structural cost basis by weighting each on-chain coin movement according to both its value and the number of days since it last moved. Historically, Dogecoin’s price approaching the lower CVDD bands has coincided with the deepest long-term accumulation zones, while touches of the upper Alpha CVDD band have aligned with every major DOGE market top over the past decade.

DOGE’s Next Structural Target At $0.85

Alphractal said Dogecoin is currently trading near the lower CVDD band at around $0.10-$0.11, a level that has previously appeared before major price rallies. Similar setups appeared in late 2014, mid-2020, and mid-2023, with the meme coin later posting gains of approximately 25,000%, 18,000%, and 500% after those periods.

According to Alphractal, the current lack of a strong narrative around DOGE is not unusual, as major narratives typically emerge after accumulation phases. The analytics firm also explained that DOGE’s year-long sideways trading indicates accumulation and a rebuilding of its cost basis rather than weakness.

It added that traditional volume metrics may not fully capture this activity because the CVDD model focuses on value-days rather than raw transaction volume, with the current chart showing what it described as “quiet absorption.”

Alphractal said its Alpha CVDD model, which it claims has successfully identified every major Dogecoin market top in previous cycles, currently places the upper target band at around $0.85. This means a potential 7.7-fold increase from its current price levels.

Breakout Calls

Alphractal predicted that DOGE could deliver a 3x gain before AI-themed meme coin narratives become the market’s main focus.

Meanwhile, analyst Ali Martinez also noted that the TD Sequential indicator had flashed a buy signal on Dogecoin. Several other market observers suggested that the asset could be on the verge of a major breakout.

The post ‘Dead Meme’ or Major Opportunity? DOGE Is Flashing The Same Signal That Preceded Its Biggest Rallies appeared first on CryptoPotato.