Dogecoin’s profits fall to a two-year low, but the price swing points to a potential recovery.

Dogecoin’s price has declined in recent weeks, reflecting broader market weakness and waning speculative demand. This pullback created a bullish divergence on the technical charts,

This signal is reinforced by improving indicators on the chain, which indicate that the selling pressure may lose steam as Dogecoin stabilizes.

Dogecoin whales await recovery

It shows the main holders of Dogecoin Renewed optimism As the end of 2025 approaches, whale addresses containing between 100 million and 1 billion Dogecoins have switched to collection mode. In three days, these wallets bought about 1.5 billion Dogecoin, worth $185 million.

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Although this accumulation does not guarantee an immediate rally, it remains positive for the price of Dogecoin. Whale actions often reflect long-term positioning rather than short-term trading. Their willingness to buy during periods of weakness indicates growing confidence that downside risks can be limited to current levels.

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The general indicators point to a deep capitulation Via Dogecoin holders. Net earnings and losses, or NUPL, fell to their lowest level in two years. The current reading is about -0.25, which reflects widespread unrealized losses throughout the network.

Historical data shows that the Dogecoin price reversal occurred when NUPL approached the -0.27 level. At these levels, selling pressure often saturates as losses peak. With earnings collapsing to October 2023 levels, stabilization conditions and a gradual recovery phase can now be formed.

The price of DOGE is preparing for a rebound

Notice that a bullish divergence is currently forming in the price of Dogecoin. Over the past two weeks, price action has recorded a lower low, while the RSI has recorded a higher high, indicating weak bearish momentum despite continued pressure on price.

This divergence is often preceded by trend reversals as buyers take control. If confirmed, DOGE could claim the $0.122 level as support. At the same time, the continued movement above this level could open the way towards $0.131, with $0.143 considered the next target of the next one.

Failure to confirm the divergence exposes DOGE to new losses. As a result, the price may fall towards $0.113 if the selling resumes. Losing this support invalidates the bullish scenario and could push Dogecoin towards $0.110 or lower in bearish conditions.