Dogecoin, known by its symbol DOGE, has exhibited strong indications of breaking out from a descending wedge pattern, generating enthusiasm among investors and traders alike.
Trading at $0.127, DOGE has experienced a 4.96% rise in the last 24 hours as of the current moment, capturing the interest of market participants.
Yet, the critical question remains: can this bullish momentum propel Dogecoin towards the highly anticipated $1.60 mark?
Increase in Daily Active Addresses and Trading Volume
An encouraging sign for a potential uptrend in Dogecoin is the recent surge in daily active addresses, with the number jumping from 50,124 to 52,211 over the last 24 hours.
The uptick in network activity indicates rising engagement from both retail and institutional investors, signaling underlying demand that could push DOGE’s price upwards.
Moreover, the spike in trading volume to $2.07 billion, up by 0.35% in the past 24 hours, serves as another bullish indicator, reflecting increased liquidity and interest in DOGE.
When trading volume rises alongside price increments, it confirms the strength of the rally and suggests potential continued growth in price.
Hence, if the trading volume keeps expanding, it could act as a catalyst propelling Dogecoin closer to its target of $1.60.
Be Cautious Despite Rising Volume
Despite robust on-chain activity and growing trading volume, Open Interest has decreased by 2.63%, now standing at $726.26 million.
This decline implies that some traders may be reducing their positions to secure profits or hedge against short-term volatility.
Thus, while DOGE’s momentum seems robust, the drop in Open Interest warrants a cautious approach.
Positive Sentiment Persists
Furthermore, recent data on liquidations indicates a prevailing bullish bias, with long liquidations surpassing short liquidations significantly.
While some traders are capitalizing on gains, the majority maintain an optimistic outlook on further price appreciation.
Therefore, as long as Dogecoin maintains crucial support levels, the bullish sentiment may persist and push prices higher.
With increasing active addresses, rising trading volume, and favorable liquidation figures, Dogecoin’s breakout seems promising.
However, monitoring the decline in Open Interest is essential for evaluating the sustainability of this momentum and the potential for DOGE to reach $1.60.