A key on-chain indicator is flashing accumulation signals for Dogecoin as the token trades near long-term support levels established in 2017.
The Cumulative Value Days Destroyed (CVDD) metric has historically preceded major DOGE price bottoms, according to analysis from Joao Wedson, founder of the Alphractal on-chain platform. Every time CVDD approached 1 or spent several days below it, significant price recovery followed, Wedson noted.
Dogecoin has dropped to the macro support level set in 2017 amid broader crypto market volatility. At the time of analysis, DOGE was trading around $0.085 on the daily chart. Analysts are monitoring whether the token breaks below $0.08, which would trigger a bottoming signal, or holds current support to attempt recovery toward $0.1019 and $0.1156.
Namtoshi Dogemoto, an investor and crypto analyst, sees the current price action as a buying opportunity. “I didn’t think we would visit down here, but it’s a great opportunity to load up now,” Dogemoto said.
Wedson predicts June as a potential bottoming month for Dogecoin, with typical Bitcoin bottoms in bear markets occurring at the end of Q3 or Q4. He advises investors to accumulate during capitulation phases when selling pressure peaks.
Historical precedent supports the thesis. In June 2020, Dogecoin dropped below the 2017 support level multiple times before recovering by month-end, demonstrating the level’s resilience.
Ali Charts, another analyst tracking the move, notes that as long as current support holds, recovery toward higher levels could unfold. A breakdown would expose the next major supply zone at $0.067.
The CVDD metric’s track record as a bottoming indicator has drawn attention from on-chain researchers examining whether Dogecoin’s current price action represents capitulation or the beginning of a sustained recovery. Wedson’s framework ties the metric to historical support levels, creating a confluence of signals that analysts view as significant for timing entry points during bear market lows.
