Dogecoin breakout sparks memecoin revival – But don’t ignore THIS risk!

ambcryptoPublished on 2026-01-03Last updated on 2026-01-03

Dogecoin [DOGE] has rallied 11.6% in the past 24 hours and was trading at $0.142 at the time of writing. CoinMarketCap data showed that the Daily Trading Volume for the leading memecoin was up 118%.

The move made DOGE the best performer among the top 10 crypto assets for the day. The move also lent the sector strength, with memes being some top-performing assets in the short term.

Bitcoin [BTC] managed to climb above the $90k level, reaching $90.9k on Friday before falling lower. A recent AMBCrypto report noted that Dogecoin showed accumulation on-chain, but was also trading within a range.

This lower timeframe range has been broken. Should traders and investors bet on more gains for DOGE, or should they look to take profits?

Exploring the CVDD channel and its Dogecoin signal for investors

In a post on X, founder and CEO of analytics platform Alphractal, Joao Wedson, observed something interesting about Dogecoin. Using the Cumulative Value Days Destroyed metric, the analyst pointed out that Dogecoin was entering “its most important accumulation zone”.

The CVDD metric uses the age and price that tokens last moved at to estimate the lowest value Dogecoin can go to, which can help identify market bottoms. Recently, it entered the blue zone (less than 1.5x CVDD), which has been a buying opportunity historically.

Investors should note that Dogecoin tends to bounce from the lower CVDD channel multiple times, reaching the 2.8x-3.618x CVDD channel levels. If this comes true once again, DOGE could rally to $0.28-$0.3.

Don’t forget to take profits

The memecoins were outperforming and could continue higher, driven by the sudden sentiment flip around Dogecoin. It presented a buying opportunity for the coming days, but traders must remember to set clear invalidation levels and profit targets.

As crypto trader Mercury remarked, “any upside is strictly relief”, but don’t cash out on a mere 10% bounce. Aim higher, but don’t expect ATHs or $1 for DOGE anytime soon.


Final Thoughts

  • The Dogecoin descent into a critical area on the CVDD channel represented a long-term buying opportunity.
  • The current rally could go to the $0.26-$0.28 area later this month before falling lower.

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