Dogecoin (DOGE), the world’s largest meme coin by market capitalization, is likely to rally when crypto market sentiment improves and the prices of digital assets stabilize, according to signals picked up by the on-chain analysis platform Santiment.

Santiment said Dogecoin’s utility and rising smart money signal a potential turning point and a bullish outlook for the asset.

Metrics Suggest Bullish Signals for DOGE

The market analytics platform urged investors to monitor the rising number of wallets holding at least 1 million DOGE. Since the start of February, these entities have grown by 1.24% (an additional 62 wallets).

Also, Dogecoin’s active addresses are at a four-month high. With over 150,000 active DOGE addresses per day, this metric is at a level not seen since mid-November 2024.

In addition to Santiment’s analysis, other market experts have identified signals that suggest DOGE is poised for a major reversal in the short term. A week ago, whales aggressively accumulated the meme coin, loading up 1.4 billion tokens in 24 hours on one occasion.

Historically, increased whale activity has caused a supply crunch that triggered a rally in prices. So, if whales continue accumulating DOGE, the meme coin may be on its way to a significant pump.

Moreover, the potential approval of a spot Dogecoin exchange-traded fund (ETF) in the United States could attract more capital into the ecosystem and push the asset’s value upward.

Dogecoin’s Price Outlook

While Dogecoin’s metrics are flashing positive signals, the cryptocurrency is down significantly due to the market-wide correction. After rallying to $0.41 on January 18, DOGE has tumbled by more than 63% to $0.15 in two months.

Data from CoinMarketCap shows DOGE is down 38% monthly. Although the asset has increased 5% in the last seven days, it is still down 2.5% daily. At the time of writing, DOGE was changing hands at $0.16, and its market cap was also down 2.5% daily.

Despite Dogecoin’s plunging value, some analysts are predicting that the asset could hit $1.1 in the next two months because it is showing a pattern similar to one seen in the 2017 bull run.