Dogecoin price has dropped more than 60% from its December high. But there might be light at the end of the tunnel for DOGE holders as recent network data shows signs of life.

The Dogecoin network suddenly came alive yesterday, with active addresses skyrockrolling by 270%. Ali reports that address activity jumped from 71,750 to 264,000 in just 24 hours. This kind of surge often precedes price movement, making this a potentially significant development.

The number of active #Dogecoin $DOGE addresses surged 270% in the last 24 hours, jumping from 71,750 to 264,000! pic.twitter.com/4QSp1lAcGo

Ascending Channel Pattern Shows an Incoming Dogecoin Rebound

DOGE is currently being traded at $0.16841 after a 29.62% price drop in 24 hours. Ali is keeping a close eye on the $0.16 level as it is a critical support zone to watch. This level is interesting because it also happens to be a previous Fibonacci retracement level (around 0.618) and has acted as an important historical price zone.

Taking a broader perspective, Ali’s chart highlights that Dogecoin has been moving inside an ascending parallel channel, which could indicate that despite the recent price pain, the long-term trend of DOGE remains bullish. Presently, DOGE is testing a mid-range level within this channel at a historically significant support zone.

If Dogecoin can manage to stay above the $0.16 and bounce, it could potentially make a move toward the next Fibonacci extension levels, which are located between $1.00 and $2.00. The $2.00 price target is reached by applying extended 1.272 and 1.414 Fibonacci projections—levels that are frequently observed to mark important targets during bull markets in the crypto sphere. However, if DOGE breaks down further from here, the next major support zone would likely be encountered between the $0.10 and $0.12 price ranges.

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Dogecoin Historical Pattern Suggests Potential Upside

Trader Tardigrade has noticed an interesting pattern in Dogecoin’s recent price action. Since October 2022, DOGE has experienced three significant pullbacks. The first two corrections, which occurred in December and March, saw drops of around 64%, from highs of $0.28 and $0.73, respectively. These were then followed by explosive rallies that took DOGE as high as $0.80 and $0.66.

The current pullback has seen a decline of approximately 66% from December’s high, placing it in a remarkably similar ballpark to the previous corrections. If this pattern continues to hold, we could be on the verge of another major pump that might propel Dogecoin toward the $1 mark.

This is a critical moment for Dogecoin. How it responds at the $0.16 support level will determine its trajectory for the coming months. The combination of surging network activity and price reaching a technically significant support zone creates an intriguing setup for the popular meme cryptocurrency.

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