Dogecoin Price To Skyrocket 74% As Addresses Hit 6.56M

Dogecoin price sideways movement since last week has left traders conflicted about whether to focus on longs or shorts. A complex amalgamation of factors, including the US CPI report, on-chain data, and Bitcoin price volatility, has contributed to this conflict.

DOGE Price $0.1 Support Holds Steady

Dogecoin price traded at $0.1042 on Thursday, marking a 1.8% daily gain and a 4.2% weekly increase. Despite recent short-term improvements, the DOGE price remains down 14.2% over the past month, indicating ongoing challenges for bulls.

IntoTheBlock’s addresses metric highlights a continued increase in the total number of Dogecoin addresses with a balance. In the last eight months, addresses in the ecosystem grew 20.1% to 6.56 million from 5.43 million. Dogecoin price decline since Q1 hasn’t dampened adoption, suggesting growing investor confidence. An increased user base could fuel a future price rally.

According to Coinglass data, a 3.35% increase in open interest to approximately $487k points to growing market participation, potentially reflecting accumulating bullish bets. Similarly, a 60% surge in options volume calls attention to increased derivative activity, which often precedes notable price moves.

At the same time, a 47% jump in options open interest highlights growing volatility expectations and shows the apparent potential for large price swings. Traders will continue to approach Dogecoin price with caution and consider other technical insights to avoid being caught on the wrong side of the trend.

Dogecoin Price Analysis: DOGE Set For Reversal

Dogecoin price technical outlook will stay steadily bullish as long as support at $0.1 is protected. Traders would be willing to bet on a larger price increase should DOGE overcome resistance at $0.11, which coincides with the falling wedge pattern’s upper trend line.

The falling wedge occurred as Dogecoin price created lower highs and higher lows, converging towards a point. Note that a breakout above the upper trendline signals a potential 74% bullish reversal, inching closer to $0.2. The distance between the first swing high and the first swing low determines the breakout target, which is projected upwards above the trend line. Traders will buy on breakout, using a stop-loss slightly below the trend line breakout point.

As per DOGE price prediction, support at $0.1 is the lifeline for immediate recovery and continued action to $0.2. However, if broken, previously bullish-leaning investors will switch to short positions, amplifying sell-side pressure and accelerating another crash to $0.08 and $0.056 levels.

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John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.