Dogecoin shows remarkable stability after the recent surge, with a 163% increase this month. Despite minor fluctuations, the upward trend of the Meme Coin remains intact.
Current market indicators suggest the potential for continued price increases, driven by high network activity and investor optimism.
Dogecoin is experiencing strong growth
Dogecoin's active addresses have reached an all-time high, surpassing 1.33 million daily participants. This surge reflects high network demand, a bullish indicator for this cryptocurrency. Increased participation often accompanies price increases, as high activity demonstrates strong investor interest and widespread acceptance of DOGE.
The increasing trading volume indicates widespread participation, further enhancing Dogecoin's credibility. High network activity has supported price increases in the past, and this trend suggests DOGE may leverage its current momentum. Investor enthusiasm, combined with broader market signals, is likely to maintain upward pressure on the Meme Coin.
Active Address Supply of Dogecoin. Source: Santiment
The Divergence index between Dogecoin Price and Daily Active Addresses is signaling strong buy, enhancing the outlook for Dogecoin. This indicator highlights the harmony between rising prices and increased participation, both reflecting healthy growth. As network activity aligns with price volatility, DOGE seems positioned for continued increases.
Additionally, macro factors, including the prolonged price increase of Bitcoin, are creating a positive environment for Altcoins. Dogecoin's recent performance aligns with this broader trend, and with Elon Musk's influence on cryptocurrency, the market hype continues to support DOGE's growth curve.
Divergence Between Dogecoin Price and Daily Active Addresses. Source: Santiment
DOGE Price Prediction: Strengthening Profits
Dogecoin is currently stabilizing above the support level of $0.36. To maintain upward momentum, DOGE must overcome and establish $0.45 as a support floor. Achieving this milestone could pave the way for further price increases, pushing prices higher.
The price uptrend is still supported by increased market demand and investor optimism. If these factors continue, Dogecoin may witness ongoing accumulation, pushing its price towards new highs. The broader market optimism and renewed interest in the utility of DOGE also contribute to this positive outlook.
Dogecoin Price Analysis. Source: TradingView
However, losing the support level of $0.36 could lead to a correction. In this scenario, DOGE might drop to $0.32, or lower down to $0.28. Any decline below $0.28 would invalidate the bullish thesis, signaling the potential for further decline.
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