Key Notes

Key Highlights

* Dogecoin (CRYPTO: DOGE) is showing signs of recovery after a 9% weekly surge saw stall at $0.24, a key resistance zone.

* The world’s largest meme coin last dropped by 2% in the past 24 hours. At the time of writing, DOGE is trading at $0.2176.

* However, analysts on X (formerly Twitter) remain optimistic as key on-chain metrics are flashing bullish signals.

What Happened: According to on-chain data, Dogecoin is seeing a surge in network activity with an uptick in active addresses, transaction volume, and whale activity.

This activity is evident in the rising number of active addresses on the Dogecoin chain. After a decline from March 2024, the count of daily active addresses has been steadily increasing since April 2024.

After dropping to around 200,000 in March 2024, the daily active addresses have steadily risen to over 500,000. This surge began in April 2024 and continues to date.

The increase in active addresses is a bullish sign as it indicates that more users are engaging with the Dogecoin blockchain. This could lead to increased transaction volume and overall network activity.

In addition to the rising active addresses, there has also been a surge in transaction volume on the Dogecoin chain. After dropping to less than 100,000 transactions per day in March 2024, the transaction volume has more than tripled.

At present, over 350,000 transactions are being executed daily on the Dogecoin chain.

This surge in transaction volume is another bullish sign as it indicates that there is high demand for Dogecoin. As more transactions are being executed, this could lead to an increase in the token’s price.

Moreover, large investors, known as whales, have been accumulating large amounts of Dogecoin. In the past 30 days alone, whales have bought over 1 billion DOGE tokens, which at current prices would be worth over $223 million.

This accumulation has helped push the token’s market cap up to $33.37 billion, a $11 billion increase over the past month.

Dogecoin Price Analysis: Crypto analyst Ali Martinez noted that the $0.25–$0.26 zone is a major resistance band for DOGE. Interestingly, the meme coin has tested this level five times since December 2024.

A breakout above this range could trigger a strong bullish rally, in the opinion of the analyst.

Meanwhile, crypto trader Trader Tardigrade believes that the current consolidation could last a few more days.

The trader noted that a final breakout will be seen, and DOGE will reach $0.40 as the next target.

On the 4-hour DOGE price chart, the Relative Strength Index (RSI) is sitting at 47, suggesting neutral momentum. The downward gradient suggests that consolidation may continue in the short term.

If DOGE drops further, traders should watch out for support at $0.217 and $0.20.

The Bollinger Bands show price compression as DOGE trades below the middle band (20-day SMA), suggesting reduced volatility. However, a break above the upper band could confirm a bullish move.

The Balance of Power (BoP) indicator currently stands at -0.34, reflecting mild bearish dominance. BoP must recover above zero to support bulls.