Amidst its formation of a strong double bottom chart pattern, Dogecoin [DOGE] is gaining attention in the crypto world with signs pointing towards a potential bullish momentum. The current trading price of Dogecoin stands at $0.4043, showing a slight decrease of 2.68% in the last 24 hours.
Nevertheless, the recent uptick in network activity coupled with a robust technical foundation is fostering increasing enthusiasm among traders and investors, sparking speculation about an imminent breakthrough.
Analysis of DOGE Chart: Can the $0.47 Barrier be Surpassed?
The appearance of the double bottom formation has established a firm support level at $0.37, while the resistance at $0.47 acts as a significant obstacle for Dogecoin. To validate the bullish setup, breaking past this resistance level could pave the way for a potential surge towards $0.50 or beyond. The ability of Dogecoin to decisively surpass this threshold will dictate its short-term trajectory, with traders closely watching for a breakout.
Spike in New Addresses and Active Wallets
Further analysis of Dogecoin’s on-chain metrics indicates a substantial spike in network activity. The number of new addresses has surged by 102.4% in the past week, while active addresses have seen a remarkable increase of 111.32%. These upward trends signal an influx of new participants joining the Dogecoin ecosystem and heightened engagement from existing users. Additionally, the significant growth of zero-balance addresses, indicating new wallet creations, reinforces the narrative of increased adoption.
Strong Transaction Volume for DOGE
Notably, Dogecoin’s transaction volume has displayed consistent growth, maintaining an average of 715.85k transactions over the last seven days, with a peak of 856.75k transactions recorded during this period. This consistent level of activity underscores the token’s usability and demand, adding a supportive layer to the prevailing bullish sentiment surrounding Dogecoin.
Optimistic Signs from Liquidation Data
Furthermore, the prevailing market sentiment leans towards a positive outlook. In the past 24 hours, the liquidation of long positions amounted to $1.42 million, significantly exceeding the $450k liquidated from short positions. This discrepancy reflects the optimistic stance of traders regarding Dogecoin’s potential to overcome the crucial $0.47 resistance level.
The increasing network activity and steady transaction volume of Dogecoin underscore a growing ecosystem, setting the stage for potential price movements. While the price is currently below the critical $0.47 resistance level, the alignment of these metrics indicates that Dogecoin’s bullish breakout potential is underpinned by solid fundamentals. If this momentum persists, Dogecoin could soon experience a rally, affirming its prominence in the cryptocurrency market.