Dogecoin's price has entered a sharp correction phase after rallying nearly 40% from a bullish flag breakout that occurred in April. According to reports from AMBCrypto, the recent drop does not erase the broader move but tests its strength. The correction has been fairly direct with little sign of a strong bounce, keeping short-term pressure tilted in favor of bears. DOGE's price action is now approaching the $0.097-demand zone, which represents the first real area where buyers can prove the trend still holds.
Underneath the surface, significant changes are occurring in Dogecoin's network activity. As reported by AMBCrypto, active addresses have fallen to their lowest levels, with only 33K active addresses currently on the network. This decline suggests that retail participation may have cooled off during the pullback, with most investors and traders shifting away as they observed current market developments. Simultaneously, transaction volume has been rising sharply, recording 4 days of steady gains after the latest dip, indicating that fewer but larger players are driving activity rather than broad engagement.
The likelihood of a potential reversal is being reinforced by increased whale activity. According to AMBCrypto analysis, the growth in wallets holding over $100K USD suggests accumulation may be taking place as the price dips. This kind of behavior often shows up during corrections, where retail steps back while larger players start positioning quietly, especially near key levels. The timing and magnitude of whales' activity usually correlates with the token's transaction volume, indicating concentrated buying interest near the current price levels.
DOGE is now approaching a level that matters significantly for its future direction. As reported by AMBCrypto, if buyers step in with strength around $0.097, the current pullback could turn into a healthy retracement within a larger uptrend. However, if that level fails, the correction may extend further before a base forms. The long-term bullish structure is being tested but not broken at this juncture. The response at the demand zone will likely determine what comes next for the cryptocurrency's price action.
