Can Dogecoin Bounce Back With Rising Network Participation?

• Whale wallets added over 1 billion DOGE from mid-April to mid-May while price climbed fast.
• The DOGE price pulled back slightly to $0.218 despite strong buying by high-volume holders.
• Developer work on DOGE increased during price growth and may point to another rise ahead.

On May 16, 2025, crypto analyst Ali (@ali_charts) posted whale accumulation data on X. Using Santiment, Ali revealed wallets holding 100M–1B DOGE had accumulated over 1 billion DOGE in one month. These holdings increased from 24.6B to nearly 26.6B DOGE between April 13 and May 13.

Source: X

Over the same period, DOGE’s price rose from $0.158 to more than $0.24, proving its popularity on the market. After May 7, there was a surge in the amount of tokens that individuals were buying and holding, with the price going up with it. Dogecoin was trading at $0.221 at the time of Ali’s post., which suggests a bullish attitude.

Market Faces Pressure Despite Bullish Whale Signals

As shown by CoinMarketCap, the price of DOGE dropped to $0.2186 by May 17, 2025. A 24-hour fall of 3.60% is a sign of increased near-term selling pressure. Dogecoin has a current market cap of $32.64B and saw a 24-hour trading volume of $1.68B, a decrease of 31.55%. Although its momentum was strong in the past, the volume-to-market cap ratio currently stands at 5.16%, confirming a slowdown.

On May 16, DOGE closed at $0.2271, and early on May 17, its price fell to $0.217. After rising to almost $0.230, the gains were short-lived, which showed there is a resistance level at that point. Despite all this, DOGE is ranked 8th in the market by capitalization, thanks to a 149.29B circulating supply. While prices are falling, whales are continuing to buy, hinting that the market might be pausing or remaining consolidated after an upward trend.

Related: Dogecoin Eyes Major Rally With Monthly Close Above $0.20

Developer Activity Suggests Network Strengthening

The work of DOGE’s developers is influencing market dynamics. From March until the first week of August, development activity increased, hitting a high of 0.81 in early March. As of May 3, development activity was at 0.307, which corresponded with the increase in the DOGE price from $0.173 to $0.24 by May 13. This illustrates the strong link between network involvement and price increases.

Source: Santiment
By May 17, development activity stood at 0.262, while DOGE traded at $0.218. The dip in both metrics suggests short-term exhaustion. However, previous patterns show that developer engagement has a measurable influence on investor sentiment. Development spikes have historically preceded upward price movement. As such, renewed coding activity could potentially support another market swing.

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