Market sentiment toward Dogecoin (DOGE) remains bullish, driven by a series of favorable indicators. In the last 24 hours, long positions worth $1.42 million have been liquidated, significantly outpacing $450,000 in shorts. This disparity underscores traders’ optimism for Dogecoin’s potential to overcome the key $0.47 resistance level.
Currently trading at $0.4043, Dogecoin reflects a 2.68% decline in the past 24 hours. Despite this dip, the cryptocurrency is gaining attention for forming a notable double bottom chart pattern. This formation often signals bullish momentum, with analysts speculating whether DOGE is poised for a breakout.
Chart Analysis: Eyes on $0.47 Resistance
The double bottom pattern indicates strong support around $0.37, while the neckline resistance at $0.47 stands as a crucial barrier. A successful breach of this level could confirm the bullish pattern, potentially driving Dogecoin toward $0.50 or beyond. Market participants are closely monitoring DOGE’s short-term momentum, which largely depends on breaking through this resistance decisively.
On-Chain Metrics Signal Growing Adoption
Dogecoin’s network activity has surged dramatically, signaling heightened interest from both new and existing participants. Over the past week, the number of new addresses has jumped by 102.4%, while active addresses have risen by an impressive 111.32%. Adding to this momentum, zero-balance addresses—a proxy for new wallet creations—have surged by 155.33%, reflecting a growing user base and increased adoption.
Sustained Transaction Volume Bolsters Optimism
Transaction volume within the Dogecoin network also highlights its growing utility. Over the past seven days, the network averaged 715,850 transactions daily, peaking at 856,750 during this period. This steady activity supports the narrative of robust demand and utility, further solidifying the bullish sentiment surrounding Dogecoin.
In summary, Dogecoin’s technical setup, coupled with strong on-chain metrics and sustained transaction volumes, paints a positive picture. While $0.47 remains a critical hurdle, breaking through this level could pave the way for significant gains, keeping traders and investors optimistic about DOGE’s near-term prospects.
