Active participation by short-term traders significantly impacts meme-based cryptocurrencies, particularly those predominantly influenced by hype and speculation. At present, Dogecoin (DOGE) stands out with the highest number of engaged short-term traders.
Recent data from IntoTheBlock reveals that DOGE leads the pack, with a remarkable 110k active short-term traders in the past week alone. This places DOGE in a prime position for notable performance within the memecoin realm.
Following DOGE closely on the charts are Shiba Inu (SHIB) and Degen (DEGEN). Although SHIB boasts a larger market capitalization, DEGEN is on par with 23k traders. Additionally, Degen has even surpassed other mid-sized memecoins in terms of popularity.
Anticipating Potential Upward Movement for DOGE
An analysis of DOGE’s weekly chart suggests that a potential price surge may be on the horizon. Since reaching its peak of $0.75 in 2021, DOGE has been undergoing a prolonged correction phase, interrupted by intermittent short-term uptrends.
Recently, the DOGE/USDT pair broke through a descending trendline, signaling a potential upward movement in the near future. If bullish momentum persists and market sentiment remains positive, this breakout could propel DOGE towards $0.4. Traders are now closely monitoring for confirmation of this breakout after surpassing key resistance levels.
Encouraging On-Chain Metrics for Dogecoin
The on-chain activity of Dogecoin offers further indications of a potential significant price increase. Notably, the number of active addresses has reached record levels since April 1st, with a staggering 199% surge in weekly activity.
Moreover, the total number of addresses holding a balance has surged to an all-time high, averaging 6.6 million over the past month.
Despite a sharp decline in new adoption rates in March 2024, there has been a recent recovery, signaling a confidence level of over 26%, which is conducive to an upward price trajectory for DOGE.
These combined metrics suggest that DOGE may be poised for sustained growth, particularly across longer timeframes.
DOGE & BTC: Aligning in a Cyclical Phase
Historically, Dogecoin has witnessed significant price surges during Bitcoin’s parabolic movements. Whenever Bitcoin surpasses its previous all-time high resistance levels, Dogecoin tends to follow with even more robust upward momentum. Presently, DOGE finds itself at a similar cyclical juncture, aligning with a potential major rally for Bitcoin.
If historical patterns repeat, Dogecoin could experience another surge, backed by its strong underlying fundamentals and heightened trader interest.
Despite the inherent unpredictability of market dynamics, the potential for DOGE to climb higher remains evident. Traders are advised to monitor critical levels and overall market sentiment for further validation of an impending bullish breakout.