Dogecoin's (CRYPTO: DOGE) daily active addresses soared by 94% to reach 57,500 on May 28, marking the highest level since early March, according to crypto analytics firm Santiment.

Throughout May, Dogecoin's network had shown muted activity, with daily active addresses ranging between 25,000 to 30,000. This sharp increase to nearly double the month's baseline and stands out as a clear anomaly.

A potential catalyst might be the updated preliminary prospectus for the 21Shares Dogecoin ETF, filed on the same day with the Securities and Exchange Commission. It is not a new application per se, but Bloomberg ETF analyst Eric Balchunas clarifies that it is an amendment to an earlier filing. He noted that such amendments typically follow internal reviews or regulatory feedback.

Good morning. 21Shares updated their (pending) Dogecoin ETF prospectus today. It’s not a new application, but rather an amendment to an earlier filing, which is common. Usually, the feedback from internal or regulatory review will spur the amendment. https://t.co/1Z5lQ89b3v

— Eric Balchunas (@EricBalchunas) May 28, 2024

While Balchunas speculates that the amendment might be related to a delay in the ETF approval, he emphasizes that it's not necessarily a negative sign. He adds that the 21Shares team is actively working to launch the ETF, which has already completed the initial filing stage.

Despite the increase in address activity, and amid speculation of an impending ETF approval, outputs from large DOGE wallets remain muted. On May 28, only 43 transactions over $100,000 and 5 over $1 million were recorded.

This continues the pattern observed since March, where a substantial decrease in high-value transfers occurred.

Out of the total DOGE holdings, 41.74% belong to whales (wallets with 100M+ DOGE), while mid-tier investors hold 20.5%, and retail holders account for 37.76%.

The relatively balanced distribution shows that Dogecoin is not overly concentrated among whales, allowing retail and mid-tier wallets to play a more active role in market direction. This contrasts with other memecoins, which often rely on a small number of addresses for most liquidity.

Further analysis from Santiment reveals continued accumulation by wallets holding 1M–10M DOGE, with minor increases also observed among 10M–100M DOGE holders. The total number of DOGE holders has also increased to 7.54 million, showing a 0.8% rise in the last two weeks, highlighting a trend of growing long-term participation in the cryptocurrency.

Dogecoin is currently trading at around $0.224 on the 4-hour chart, where it is locked in a descending triangle pattern. This structure features a flat support level at $0.215 and a descending resistance trendline starting near $0.26, now pressing at $0.23.

The relative strength index (RSI) is neutral at 49.3, indicating a lack of momentum in either direction. Volume has remained relatively low, further reinforcing that the current price zone reflects indecision.

A breakout above the $0.23 resistance could push Dogecoin toward the $0.25–$0.27 range, which marks the next supply zone based on previous price rejections in early May. A failure to break above the resistance could trigger a decline toward $0.20, especially if the $0.215 support breaks.