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- Dogecoin’s active addresses surged 400%, suggesting increased market participation and potential breakout.
- Ali Martinez predicts Dogecoin’s price could rise following historical trends of active address increases.
- Dogecoin’s breakout may depend on holding key support levels, with Bitcoin’s stability playing a crucial role.
A number of transactions and network activity suggest that Dogecoin may go up as it inches closer to a breakout. Data from Santiment shows that DOGE active addresses trade activity has increased by 400% and recently reached 395,000. This is a clear implication that there has increased players in the market and hence a increased through put for the network.
Network Activity and Bullish Trends
In an X post on Saturday, Ali Martinez highlighted that historically, there is a relationship between the number of active addresses and price surges. He pointed out that it is typical for the number of active addresses to increase before the value of an asset increases. Considering the current activity levels within the network, many believe DOGE may also be inclined to mirror this bull run.
Traders are paying particular attention to the technical situation in the DOGE market now. On the DOGE hourly chart, the coin is in the consolidation phase within the symmetrical triangle which is commonly a breakout pattern. If the price goes beyond the upper trend line, Tardigrade the trader explains that DOGE could spike up to $0.18 or even more. This will point to a further continuation to the upside, implying that there is a bullish run in the future.
Dogecoin Future Market Dynamics
However, if DOGE fails to hold the key support level of $0.168, one might witness a bearish reversal for a short term. This would bring a pullback in price to a particular position before another attempt to go higher can be made.
The price changes in Bitcoin will affect the positive movements of DOGE in the market. If Bitcoin persists, it could be the key that elicits a breakout for DOGE. Such a breakout usually comes with a good trading volume meaning that there would be many buyers willing to take the security higher. The buyers are able to support the structure and possibly push the price even higher.
On the other hand, should Dogecoin fail to follow through, the token may trade sideways or even pull back. Only the coming days will tell whether DOGE has the potential to go higher as witnessed before completed a rally.
