Dogecoin Set to Rally As On-Chain Metric Signal Bullish Trend, Analyst Highlights
In the most recent update, on-chain data reveals a notable increase in short-term trading activity for meme coins, indicating the potential for a rally in the price of Dogecoin. The recent 65% price retracement of Dogecoin aligns with the typical pattern following a breakout from a multi-year descending triangle, setting the stage for a potential bull rally.
DOGE Addresses to 133,880
Crypto analyst Ali Martinez has highlighted the potential for a significant movement in Dogecoin price, noting that the coin is currently breaking out of a multi-year descending triangle pattern. Similar breakouts in the past have historically signalled significant price increases, with the memecoin experiencing a 200% surge and subsequently undergoing a 60% retracement before embarking on a more substantial bull run.
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According to historical analysis, three breakouts similar to the current pattern since 2015 have shown significant upward movement. If history is to repeat itself, a midterm rally could push Dogecoin price up by 200% to $0.2236, a level last seen in December 2021.
Despite the current price of $0.1112, representing a 2.92% jump in the last 24 hours, the broader market conditions, including macroeconomic and investor sentiment perspectives, are likely to shape its course in the coming weeks.
Whale Activity
Furthermore, whale activity around Dogecoin has intensified, with whales accumulating 2.07B DOGE in just one week, marking the most significant accumulation of this token by whales since January. This indicates strong interest from large holders and potentially sets the stage for a substantial price movement.
Dogecoin Sudden Selling Pressure
Dogecoin has shown resilience in the face of sudden selling pressure in the crypto market, posting gains. In the last week alone, some 110,000 short-term traders have traded Dogecoin, far outpacing its closest rivals, Shiba Inu, DEGEN, and Pepe, signaling a rise in trading volume and continued attractiveness of this memecoin for those seeking to profit from meme coins.
The surge in active DOGE addresses to 133,880, the highest level in the past eight months, reflects a resurgence in interest within the DOGE community, particularly as new users flock to the network. This growth is attributed to a combination of factors, including a broader positive sentiment in the market and a growing number of wallets, which reached over 90 million.
Price Action and Market Performance
Although DOGE recently lost around 15% of its peak value and is currently trading at $0.1111, analysts remain optimistic that it might rise to $0.1315 this month and cite growing whale interest as support for such a rebound.
Recent data from Santiment shows that whales holding between 1 and 10 million DOGE in wallets continued aggressively accumulating DOGE since October 2024, indicating confidence in the coin’s future potential and potentially signaling a market bottom and probable price reversal.
Future Prospect
The increase in active addresses and whale accumulation fuels speculation about Dogecoin’s future trajectory, particularly in anticipation of further developments in the Dogecoin network. This surge in new users and enthusiasm signals renewed investor interest and potential growth for Dogecoin.
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Cryptolifedigital is a cryptocurrency blogger and analyst known for providing insightful analysis and commentary on the ever-changing digital currency landscape. With a keen eye for market trends and a deep understanding of blockchain technology, Cryptolifedigital helps readers navigate the complexities of the crypto world, making informed investment decisions. Whether you’re a seasoned investor or just starting out, Cryptolifedigital’s analysis offers valuable insights into the world of cryptocurrency.
