Dogecoin has witnessed a massive spike in its active addresses, providing a bullish outlook for the foremost meme coin. This development suggests that a DOGE price bullish reversal could be on the horizon as it regains crucial support levels.
Dogecoin Records 47% Spike In Active Addresses
In an X post, crypto analyst Ali Martinez highlighted the uptick in Dogecoin’s network activity. He noted that active addresses have surged by 47% in the past month, increasing from 110,000 to 163,000. Such a spike is significant as it indicates a growing user base engaging with the network.
This uptick in active addresses could ignite a notable rally in Dogecoin’s price, as it reflects an increase in the utility of DOGE. Another positive on-chain metric supporting this bullish sentiment is the doubling of new addresses, with Martinez confirming that Dogecoin’s new addresses grew from 16,400 to 34,600 in just one month.
Martinez suggested that the Dogecoin price could witness a rebound soon, as DOGE is currently forming a bullish reversal doji on the weekly chart. His analysis indicates potential for DOGE to reclaim the psychological $0.20 support level, possibly rallying to as high as $0.28.
Furthermore, he pointed out that the Dogecoin price currently sits at a key support level within an ascending channel. If this support level remains intact, a rebound towards the channel’s mid or upper boundaries could become a reality, which places the mid boundary at $3 and the upper boundary just above $18 based on his chart analysis.
DOGE May Have Already Reached The Bottom
In another analysis, crypto trader Trader Tardigrade proposed that Dogecoin’s price might have already reached its lowest point. Observing DOGE’s historical trajectory, he noted consistent patterns within a macro channel since its inception and reasoned that if the coin remains within the channel without deviation, it may have already found its bottom.
Another assertion made by Trader Tardigrade indicated belief in Dogecoin’s potential to outperform many altcoins in the forthcoming months, further contributing to a positive market outlook for the meme coin. However, he emphasized that to reverse its current downtrend, DOGE must break above the $0.17 resistance level.
The analyst pointed out that a resistance trendline exists just above the current price of the meme coin on the 4-hour chart, marking an essential barrier at $0.17. Breaking above this trendline is critical for witnessing a bullish reversal.
As of this writing, the Dogecoin price is trading around $0.168, showing an increase over the last 24 hours, according to data from CoinMarketCap.
