Market sentiment surrounding Dogecoin (DOGE) has turned bullish, fueled by strong on-chain activity and technical indicators suggesting potential upward momentum. Despite a 2.68% price dip in the past 24 hours, DOGE has captured traders’ attention for forming a promising double-bottom chart pattern, a classic signal of bullish reversal.
Surging Network Activity Signals Growing Adoption
Dogecoin’s on-chain activity has surged dramatically, reflecting increased interest from both new and existing users. Over the last week:
• New Addresses: Increased by 102.4%, highlighting a growing user base.
• Active Addresses: Rose by 111.32%, signaling greater engagement from existing participants.
• Zero-Balance Addresses: Jumped by 155.33%, suggesting a wave of new wallet creations.
These metrics indicate heightened adoption and utility, which are critical factors for long-term price stability and growth.
Rising Transaction Volumes
The Dogecoin network has also recorded impressive transaction volumes, averaging 715,850 daily transactions over the past seven days. The peak of 856,750 daily transactions underscores robust demand for DOGE, further supporting the optimistic market sentiment.
Traders Bet on Dogecoin’s Upside
Currently trading at $0.40, Dogecoin faces a crucial resistance level at $0.47. The cryptocurrency has demonstrated strong support around $0.37, forming the double-bottom structure. Analysts suggest that a successful breakout above $0.47 could confirm this pattern, potentially propelling DOGE toward the $0.50 mark or higher.
In the past 24 hours, long positions worth $1.42 million have been liquidated, significantly outpacing $450,000 in short positions. This imbalance underscores trader confidence in Dogecoin’s ability to overcome its resistance and establish a bullish trajectory.
Outlook for Dogecoin
Breaking above the $0.47 resistance is seen as a pivotal moment for Dogecoin. A decisive move past this level could validate the bullish double-bottom pattern, potentially setting the stage for a rally toward $0.50 or higher. However, failure to breach this resistance may result in consolidation around current levels.
With a growing user base, surging network activity, and strong technical signals, Dogecoin’s near-term prospects remain promising. Market participants are closely monitoring its momentum, as a breakthrough could solidify its position as a leading cryptocurrency in the evolving digital asset landscape.