Dogecoin Eyes $1 Rally as On-Chain Metrics Show Mixed Signals

Dogecoin's price remains steady at approximately $0.15, despite the offloading of over 570 million DOGE by large holders last week. On-chain data shows a rise in the number of wallets and fluctuating daily active addresses and transactions. Analysts predict a strong possibility of a bullish breakout, with some price targets reaching $1.

Dogecoin continues to generate significant interest within the cryptocurrency market, with buy and sell signals suggesting sustained upward momentum, despite current price consolidation. Crypto analyst Ali Martinez notes that whale wallets have dumped over 570 million DOGE recently. However, DOGE has remained above $0.15 (currently at $0.1558), defying short-term bearish predictions and suggesting underlying market strength.

This resilience is supported by Glassnode data revealing a growth in long-term holders. The number of DOGE addresses has surpassed 85 million, an all-time high. While the price is stable, the increasing number of wallets indicates sustained user engagement. Source: Glassnode

Nevertheless, active address spikes have been erratic. Recent increases to over 1.8 million active addresses—the highest in years—could indicate speculative activity or bot manipulation, but haven't yet caused significant price volatility. Source: Glassnode

Technical indicators suggest a potential reversal, with analysts adopting a bullish stance. TradingView charts show DOGE consolidating after recovering from the $0.1515 support level. The Relative Strength Index (RSI) sits at 43, a neutral zone with potential for upward movement. The MACD histogram is gradually shifting towards bullish territory, hinting at a potential sentiment change. Source: TradingView

Technical analyst STEPH IS CRYPTO believes DOGE has rebounded from a support level and could experience a sharp rise, reiterating a $1 price target. While speculative, this aligns with growing community anticipation of a renewed meme coin rally. Further bolstering the bullish case, trader Trader Tardigrade points to a previous 93-day bull run following a 159-day bear market. If history repeats, DOGE could be entering a new bullish phase. However, it's important to note that past performance doesn't guarantee future results. Source: X, Trader Tardigrade

Glassnode metrics also reveal high average daily transaction counts, with peaks exceeding 14 million earlier in 2024. While unusual, this suggests heightened activity at key psychological price levels. Source: Glassnode

Despite this network activity, Dogecoin's price remains range-bound, highlighting a disconnect between usage and value. Recent weeks have shown a subdued bullish trend, with traders awaiting a decisive breakout before committing substantial capital.

Dogecoin currently trades above a crucial support level. Analyst opinions diverge, but ongoing development and cyclical trends could signal progress if buyer interest returns. The $0.17 resistance level is now a key focus, potentially triggering the next price surge.