Dogecoin is trading at a critical level after seven weeks of decline, but new data indicates a potential transition into a base-building phase. On-chain metrics show the memecoin is at a historically rare discount, while accumulation signals and liquidity positioning suggest a growing possibility of a near-term upward move toward the $0.10 region.
Dogecoin now sits at a critical technical and structural level following weeks of sustained selling pressure. Emerging data suggests the largest memecoin may be transitioning into a base-building phase.
The asset has declined for seven consecutive weeks, losing approximately 39% during that period. A modest 2.81% daily gain does little to offset the broader bearish trend.
A key on-chain indicator, measuring how many historical trading days closed below the current price, has climbed to 1,100 days. That figure has now climbed to 1,100 days, marking an all-time high.
This historically elevated discount typically emerges during late-stage corrections. Conditions like this often precede structural recovery phases rather than prolonged collapse.
Technical analysis of the Accumulation/Distribution indicator provides additional clarity. The asset currently trades within an accumulation zone, with cumulative volume exceeding 203 billion units.
The Money Flow Index reinforces this development by remaining above neutral territory. That shift reflects gradual but consistent buying pressure rather than aggressive distribution.
Derivatives data adds another layer to the analysis. Liquidity clusters—areas with dense concentrations of pending liquidation orders—often attract price action.
Significant liquidity sits above Dogecoin‘s current price on the Binance liquidation heatmap. This positioning increases the probability of a near-term upward move as price gravitates toward those levels.
Such a move would align with the gradual accumulation observed across Spot and volume-based indicators. The combination of metrics suggests DOGE may be transitioning from prolonged decline into early-stage accumulation.
