Dogecoin (DOGE) holders are buying the dip despite recent volatility, with onchain data indicating a potential breakout to $1.60 by early 2026. After a sharp 66% drop on October 10, which saw DOGE plummet from $0.25 to $0.08, the cryptocurrency quickly rebounded to $0.20. This flash crash resulted in over $365 million in long positions being liquidated, significantly surpassing the previous yearly high of $89 million. Despite the turbulence, DOGE's long-term fundamentals appear strong. Alphractal CEO Joao Wedson noted that short-term holders are accumulating, and the CVDD Alpha metric, which has accurately predicted DOGE cycle tops since 2016, suggests a potential for future gains. Additionally, Hodl Waves data shows an increase in DOGE supply held by investors with up to six months of coin age, indicating renewed speculative interest. Market analysts suggest that DOGE's current market structure mirrors past bull cycles, with conditions ripe for a breakout. The MVRV Z-Score remains below euphoric levels, and retail positioning is neutral, suggesting accumulation may continue. Analysts believe that DOGE could reach $1.60 by Q1 2026 if current trends persist.