Throughout its history, Dogecoin [DOGE] has displayed a consistent pattern of significant price surges followed by corrections. For instance, in 2017, DOGE experienced a 212% increase, followed by a 40% retracement, and then a remarkable 5,000% surge. Similarly, in 2021, it saw a 476% rise, a 56% correction, and later skyrocketed by 12,000%.
In the current cycle in 2024, Dogecoin has followed a similar trajectory, marking a 440% increase from $0.065 to $0.39547 before correcting by 46%.
Based on analysis by crypto expert Ali, this observed pattern hints at the potential for a significant rally if Dogecoin continues to follow the trend seen in past cycles.
Current Market Performance and Key Levels to Watch
At the time of writing, Dogecoin was valued at $0.3167, showing a decrease of 1.43% in the last 24 hours and a drop of 21.23% over the past week. The cryptocurrency boasts a market capitalization of $46.66 billion and a daily trading volume of $4.37 billion.
Price analysis indicates that DOGE is trading within its long-term logarithmic price range. Support levels are identified at $0.065 and $0.19-$0.20, while resistance levels are noted at $0.39547 and the all-time high of $0.73665 recorded in 2021.
Experts have suggested a potential upper limit of $17.94 if Dogecoin maintains its historical uptrend within the established price channel.
Increased On-Chain Activity Reflects Growing Interest
On-chain data from IntoTheBlock reveals a surge in network activity, with active addresses totaling to 136,850 and 58,990 new addresses created as of November 11th.
Over the past week, the number of new addresses increased by 102.40%, active addresses by 111.32%, and zero-balance addresses by 155.33%.
This rise in address activity aligns with Dogecoin’s recent price movement to $0.40, indicating a renewed interest in the cryptocurrency from both individual and institutional investors.
Moreover, large transactions involving Dogecoin have notably increased. Whale transactions hit a peak of 9,410 in the past week, correlating with the recent surge in price, a substantial rise from the previous week’s low of 2,450 transactions recorded on November 8th.
Data from Coinglass highlights a 24.83% decrease in trading volume to $7.42 billion, alongside a 4.71% drop in open interest for futures contracts to $1.95 billion. Options trading volumes also declined by 58.52% to $427.08 million, with open interest in options contracts at $1.18 million.
Considering the historical performance, the uptick in address activity, and the surge in large transactions, the data suggests that Dogecoin might be gearing up for another notable price surge.