Dogecoin’s Surge in Network Activity Signals Potential Bullish Trend
In the dynamic world of cryptocurrencies, Dogecoin is once again capturing attention with a dramatic rise in its active addresses. This surge hints at a promising future for this popular meme coin, suggesting a potential bullish reversal as it regains crucial support levels.
Significant Increase in Dogecoin’s Active Addresses
Renowned crypto analyst, Ali Martinez, recently highlighted a notable uptrend in Dogecoin’s network activity. According to his analysis, active addresses have skyrocketed by 47% over the past month, escalating from 110,000 to an impressive 163,000. This increase signals a renewed interest and usage of the network, which could herald a substantial rally in Dogecoin’s price.
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The rise in active addresses underscores the growing utility of DOGE. Supporting this optimistic perspective is another encouraging on-chain metric: the doubling of new addresses within the same timeframe. Martinez shared that new addresses leaped from 16,400 to 34,600, further bolstering a bullish outlook for Dogecoin.
Technical Analysis: Potential Price Reversal
Martinez’s detailed analysis suggests that Dogecoin might be on the verge of a price rebound. His insights reveal the formation of a bullish reversal doji on the weekly chart, indicating that Dogecoin could soon reclaim the significant psychological support level of $0.2, with potential to rise as high as $0.28.
Further observations from Martinez suggest that DOGE is maintaining a critical support level within an ascending channel. If this support holds, the meme coin could rally towards the channel’s mid or upper boundary, with projections placing DOGE at $3 or even above $18 at the upper boundary.
Has Dogecoin Hit Rock Bottom?
Another respected crypto analyst, Trader Tardigrade, posits that Dogecoin may have already reached its lowest point. He has observed that DOGE has consistently followed a specific macro channel since its inception. Historically, deviations from this channel have marked significant price movements. If Dogecoin remains within this channel without deviation, it suggests the coin has indeed bottomed out.
Future Outlook: Dogecoin’s Potential to Outperform
Trader Tardigrade is optimistic about Dogecoin’s future performance, predicting it will surpass most altcoins in the coming months. For this bullish scenario to unfold, DOGE must break past the $0.17 mark to reverse its current bearish trend. A critical resistance trendline on the 4-hour chart, currently sitting at $0.17, poses an immediate challenge that Dogecoin must overcome to secure a bullish reversal.
As of now, Dogecoin is trading at approximately $0.168, showing a positive movement in the last 24 hours, according to CoinMarketCap data.
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