Dogecoin (DOGE) Price: CVDD Indicator Flashes Major Accumulation Signal at Current Levels
CVDD just screamed 'buy.'
Forget the memes for a second—a key on-chain metric is pointing to serious accumulation in the Dogecoin market. The Cumulative Value-Days Destroyed (CVDD) indicator, a tool favored by long-term holders to spot generational bottoms, is painting a compelling picture for DOGE.
The Signal in the Noise
CVDD measures the aggregate dormancy of coins being spent. When its value aligns with or dips below the current price, it historically signals that long-term, patient capital is stepping in. It's the market's way of whispering that the weak hands are gone and the strong are loading up.
Why This Time Could Be Different
This isn't about Elon Musk's latest tweet. This is about raw, on-chain data suggesting a foundational shift in holder behavior. The indicator implies that at these price levels, the cost basis of coins being moved is so low that selling pressure from long-term holders has virtually evaporated. What's left? A market ripe for a new cycle.
A Cynical Note for the 'Serious' Investors
Of course, traditional finance will scoff—placing a multi-billion dollar valuation on a joke coin with an inflationary supply. But while they're busy over-engineering derivatives that blow up every decade, Dogecoin's community just keeps on accumulating. Sometimes, the market's best signal is the one Wall Street refuses to see.
The bottom line: The charts are starting to back up the hype. When the data talks, even the dogs listen.
TLDR
- Dogecoin has gained nearly 20% in the past 7 days, showing strong recovery in early 2026
- Crypto analyst Joao Wedson says DOGE has entered a key accumulation zone at $0.20 using CVDD indicator
- Historical data suggests DOGE could reach $0.80 in the coming weeks, representing a potential 433% gain
- The token broke above $0.14, reversing its bearish trend with support found at $0.12
- DOGE is trading above $0.150 with bullish momentum confirmed by RSI breaking above its 14-day moving average
Dogecoin has posted strong gains to start 2026, climbing nearly 20% over the past week. The meme coin’s price action has caught the attention of crypto traders who are watching for signs of a larger rally.
Joao Wedson, founder of crypto analytics firm Alphractal, shared analysis suggesting Doge has entered an important buying zone. His firm uses an on-chain indicator called CVDD (Cumulative Value Days Destroyed) to track accumulation patterns.
Dogecoin has entered its most important accumulation zone.
Historically, the blue levels of the CVDD Channel have acted as strong structural support for DOGE. After price touched the first blue level, Dogecoin rallied +24% in the last 48 hours.
The CVDD (Cumulative Value Days… pic.twitter.com/bPNQXj2CEK
— Joao Wedson (@joao_wedson) January 2, 2026
The CVDD metric estimates long-term value based on the economic weight of coins moving on-chain. Wedson’s chart shows DOGE touching a lower blue line that marks areas where strong accumulation typically occurs.
In previous instances when dogecoin reached this zone, the price jumped sharply afterward. Based on these historical patterns, Wedson’s model points to a potential move toward $0.80 in the coming weeks.
From current levels, such a move WOULD represent a 433% gain for DOGE holders. This comes at a time when meme coins are showing relative strength compared to other crypto sectors.
Price Chart Analysis
Dogecoin appears to have found support around $0.12, which aligns with Wedson’s accumulation metric. The token has since broken above $0.14, invalidating its previous bearish structure.
$Doge/weekly#Dogecoin has retested the same trendline three times and is now ready for a true surge
pic.twitter.com/8xJeoz9zoX
— Trader Tardigrade (@TATrader_Alan) January 5, 2026
The break above $0.14 marks an important technical shift. DOGE could now target $0.20 as the next resistance level, followed by $0.28 if buying momentum continues.
The Relative Strength Index confirms the trend change. On January 1, the RSI broke above its 14-day moving average and quickly moved past the midpoint line. This indicates buyers have taken control of price action.
Current Trading Levels
DOGE is currently trading above $0.150 and the 100-hour simple moving average. A bullish trend line has formed with support at the $0.150 level on hourly charts.
If the rally continues, immediate resistance sits NEAR $0.1540. The first major resistance level for bulls is around $0.1550, with the next target at $0.1620.
A close above $0.1620 could push the price toward $0.1750. Further gains might bring $0.180 into view, with $0.1840 as the next major level.
On the downside, initial support is at $0.150 and the trend line. The next support level is $0.145, with main support at $0.1420.
If DOGE breaks below $0.1420, the price could decline toward $0.1350 or $0.1320 in the near term. The recent high reached $0.1541 before some profit-taking occurred.
The 23.6% Fibonacci retracement level from the swing low at $0.1156 to the high at $0.1541 has been tested. DOGE remains above this level as consolidation continues.
