Dogecoin's active addresses peaked at over 50,000 in October, aligning with a price surge to $0.47.
Total holders grew from 5.5M to 6.9M between late 2023 and December 2024, reflecting strong investor confidence.
Current Fibonacci levels at $0.28082 and $0.22213 could signal a bullish reversal if buying pressure increases.
Dogecoin (DOGE), currently trading at $0.31605, moves toward Fibonacci retracement levels as part of its ongoing correction phase. The cryptocurrency approaches crucial support levels, which analysts believe could signal the start of a strong bullish trend if respected.
Key Fibonacci Support Levels in Focus
The first major Fibonacci retracement zone is at $0.28082, representing the 0.618 level, which often provides strong initial support during corrections. Additionally, a deeper support level is identified at $0.22213, aligning with the 0.786 Fibonacci retracement zone. Both levels are critical for traders monitoring possible price rebounds.
Analysts highlight that the Fibonacci zones coincide with broader technical patterns, increasing the likelihood of a price reversal. A failure to hold support at these levels, however, could result in further downside movement. Hence, traders are watching these zones closely as DOGE edges toward them.
The ongoing price action also aligns with a descending wedge pattern, a common indicator of potential upward breakouts when paired with key support levels.
Potential Targets Identified for Bullish Breakout
If Dogecoin respects the Fibonacci retracement zones and reverses upward, three potential targets have been identified by analysts. The first target is $0.49784, which serves as the nearest resistance level based on historical price action.
The second target is $0.58185, which is another critical mid-range milestone for traders seeking longer-term profits. Lastly, the third target at $0.66228 marks a significant resistance zone, which could represent a key benchmark for bullish momentum.
These targets, derived from Fibonacci extensions and historical trading data, offer traders clear milestones if the bullish breakout occurs. However, a failure to sustain momentum at Fibonacci support levels could dampen upward movement.
Traders Monitor Market Patterns for Next Moves
The price currently consolidates within a descending wedge pattern, which often signals a breakout as the range tightens. The combination of Fibonacci retracement zones and this pattern suggests heightened interest in the coming days.
Analysts also point out that increased buying pressure near these levels could validate the bullish reversal. If DOGE fails to hold above $0.22213, it may face further losses. Traders are now asking if the cryptocurrency can sustain its critical levels or face prolonged downward pressure.
Dogecoin On-Chain Data Reveals Correlation Between Holders and Price Activity
Dogecoin’s on-chain metrics from Santiment highlight intriguing trends in daily active addresses, total holders, and price movements throughout 2023 and 2024. As of December 24, 2024, Dogecoin's daily active accounts reached 34,800, showcasing a slight decline from the activity peaks observed in late October. During the October surge, daily active addresses climbed above 50,000, coinciding with a price spike to approximately $0.47.
Source: Santiment
This correlation between active addresses and price surges underlines the growing speculative interest in Dogecoin during bullish market cycles. Moreover, the price retraced to $0.321, closely mirroring the decrease in active addresses.
Additionally, Dogecoin’s total holder count demonstrated steady growth throughout 2023, rising to 6.9 million by December 2024. Notably, accumulation occurred between October 2023 and February 2024, where the total holder count rose from 5.5 million to over 6.3 million. This period coincided with sustained price increases, highlighting the strong investor confidence during upward momentum.
Despite the price corrections in Q4 2024, the number of holders remains near all-time highs, suggesting long-term confidence among investors. These on-chain metrics provide valuable insights into Dogecoin’s market behavior, where active addresses and accumulation patterns directly influence price dynamics.
