Dogecoin has recently captured the attention of investors and traders alike, as its active addresses have surged by an impressive 47% over the past month.
This surge has not only heightened interest in the leading meme coin but also suggests a potential bullish reversal in the price of DOGE. The increase in active addresses—rising from 110,000 to 163,000—indicates a growing user base and enhanced network utility. In the world of cryptocurrencies, an uptick in active addresses often correlates with price appreciation.
Analyst Ali Martinez recently mentioned in an update that alongside the increase in active addresses, new addresses on the Dogecoin network have also doubled, jumping from 16,400 to 34,600. This influx of new users further contributes to a bullish sentiment surrounding DOGE.
Martinez’s analysis points to a bullish reversal doji forming on the weekly chart, suggesting that DOGE is on the verge of reclaiming the psychological support level of $0.20. If the momentum continues, predictions suggest the price could rally as high as $0.28. Furthermore, DOGE is currently consolidating within an ascending channel, and if the price holds above key support levels, a rebound towards the mid and upper boundaries could be plausible, potentially reaching price levels upwards of $3 and more than $18 respectively.
In an intriguing twist, another analyst, Trader Tardigrade, posits that Dogecoin may have already hit its bottom. He points out its adherence to a macro channel and notes that historically, price deviations have occurred near the edges of this channel. If DOGE remains within this channel without deviation, it might signify that it has indeed found its floor.
Tardigrade also suggests that for DOGE to initiate a bullish trend, it must break through a resistance trendline positioned at $0.17. Currently trading around $0.168, this price action is being closely monitored by traders looking for signs of a reversal.
In summary, the recent surge in Dogecoin’s active addresses and new wallet creations, coupled with technical indicators suggesting a bullish reversal, provide a compelling narrative for DOGE’s future. As traders position themselves ahead of potential price movements, the enthusiasm surrounding this meme coin indicates that the community remains hopeful for a significant price rally in the near term.
