Dogecoin (CRYPTO: DOGE) is showing promise of a bullish reversal as it reclaims a key support level and witnesses a massive spike in its active addresses, an X user pointed out.

What Happened: Crypto analyst Ali Martinez highlighted that Dogecoin's network activity is picking up. Active addresses have jumped 47% in the past month, rising from 110,000 to 163,000, Martinez said in an X post on Thursday. This development is bullish as it indicates more users are engaging with the Dogecoin network, which could help spark a significant rally in the meme coin's price.

"Such a huge increase in activity is bullish and could be setting the stage for a decent move from here," the analyst stated.

Martinez further noted that Dogecoin's new addresses have doubled in the past month. According to his calculations, around 16,400 new addresses were created in July, while the number soared to 34,600 in August.

"The meme coin is showing signs of life!" Martinez said in another X post.

Dogecoin price is also showing promise of a rebound as it is printing a bullish reversal doji on the weekly chart and reclaims the psychological $0.2 support, Martinez said. According to his chart, the foremost meme coin could rise to as high as $0.28.

If this support holds, we may be setting up for a rebound towards the mid or upper boundary of the channel on the weekly time frame, putting the price target at $0.3 or potentially even higher, crypto analyst Ali Martinez pointed out in yet another X post.

According to CoinMarketCap data, the Dogecoin price is currently at $0.167 and has risen by 0.88% in the last 24 hours.

Top Chart: Trader Tardigrade highlighted that the Dogecoin price may have already reached the bottom as it remains within a macro channel and has never deviated from it despite touching the channel's edges.

"If the coin stays in the channel without deviation this time (which it might not as we are already at the edge), then I think we hit the bottom," Trader Tardigrade said in an X post.

Moreover, if the FTX collapse had occurred earlier in the year, then we might have seen a complete wipeout of altcoins, but since it happened later in the year, we will likely witness a scenario where most altcoins perform poorly, but Dogecoin will outperform them, the analyst added in a separate post.

The cryptocurrency analyst explained that the Dogecoin price needs to break above $0.17 to reverse its current downtrend. According to his chart, a resistance trendline is sitting above the meme coin on the 4-hour chart. If Dogecoin can break this trendline, which is currently at $0.17, then we will see a reversal.