At press time, Dogecoin tops the list of coins with the most short-term traders
After the breakout, the price action of BBH appears to be poised to move higher
Short-term trader activity plays a vital role in memecoins, especially when these tokens are mainly driven by hype and speculation. Among them, Dogecoin (DOGE) currently leads the pack with the highest number of active short-term traders.
According to IntoTheBlock, DOGE tops the list with over 110,000 short-term traders in the past seven days. This makes DOGE an outperformer in the memecoin space.
On this chart, DOGE is followed by Shiba Inu (SHIB) and Degen (DEGEN). However, despite SHIB’s larger market cap, Degen’s market cap matches its 23,000 market cap. In fact, Degen also outperforms other mid-cap memecoins.
The dog looks like it's about to jump
Now, analyzing the DOGE weekly chart, a potential rebound seems imminent. Since reaching a peak of $0.75 in 2021, DOGE has been in a long period of correction with intermittent short-term rebounds.
Recently, the DOGE/USDT pair broke above the downtrend line. This suggests that it might be ready to move higher in the near future.
This breakout could push DOGE towards $0.4 if further bullish momentum and sentiment support the move. With the key resistance level breached, traders are eyeing for confirmation of this breakout.
On-chain metrics continue to grow
Dogecoin’s on-chain activity further proves its potential for significant price increases. Consider this – the number of active addresses has hit an all-time high since April 1, with weekly activity up 199%.
Additionally, the total number of addresses holding balances has climbed to an all-time high, reaching an average of 6.6 million over the past 30 days.
The new adoption rate has also recovered after a sharp decline in March 2024. Currently, a value of over 26% is a signal of growing confidence in DOGE, supporting the possibility of price increases.
These indicators seem to suggest that DOGE can continue to grow, especially on higher time frames.
Cyclical moments for DOGE & BTC
Dogecoin has experienced the most significant price rally in history amid Bitcoin’s parabolic move.
When Bitcoin Dogecoin broke through its all-time high resistance and then followed it up with a more aggressive rally. DOGE is currently at a similar cyclical moment and Bitcoin may be preparing for another massive run.
If history repeats itself, Dogecoin could surge again, supported by its strong fundamentals and trader interest.
While market dynamics remain unpredictable, it is clear that DOGE is climbing higher. Traders should keep an eye on key levels and monitor overall market sentiment for further confirmation of a bullish breakout.
