Dogecoin (DOGE) recently surged over 39%, sparking renewed euphoria and optimism among traders and investors. Key metrics from IntoTheBlock reveal that DOGE network activity has increased several times over the past month, a sign of increased engagement that suggests the meme coin could be primed for more gains.
As Bitcoin nears its all-time high, the broader crypto market rally is fueling confidence that DOGE could soon challenge its yearly high of $0.228.
The increase in network activity highlights the growing momentum behind DOGE, as new and seasoned investors show increased interest in the coin. As traders become more active, sentiment around Dogecoin has taken a bullish turn, leading many to anticipate further upside.
As enthusiasm builds and BTC’s performance suggests continued strength in the market, DOGE’s momentum could allow it to reach new local highs in the coming weeks.
Dogecoin Activity Supports Price Action
Dogecoin has finally turned a corner and many analysts believe that this rally is only just beginning. Recent data from IntoTheBlock reveals a substantial increase in daily active addresses on the Dogecoin network, with several notable spikes in activity over the past month.
This increase in network engagement is often a bullish indicator, signaling growing demand and optimism among traders. With DOGE now testing a critical supply level around $0.18, bulls are focused on maintaining momentum to break through this barrier and ultimately target the yearly high of $0.228.
Analysts suggest that a successful break above $0.18 could pave the way for Dogecoin’s next significant rally. However, if the bulls face resistance at this level, a return to areas of lower demand could provide the liquidity needed to fuel the next rally.
Increased network activity is a promising signal for the DOGE community, as it indicates that new interest is supporting price action. As Bitcoin leads the market higher, Dogecoin could continue to benefit from the current wave of crypto enthusiasm, putting it in a good position to challenge for new highs.
For now, DOGE remains one of the coins to watch closely as it breaks through critical resistance, with traders eager to see if it can ride this wave to new highs.
DOGE Price Action Signals Strength
Dogecoin is trading at $0.172, following a strong 39% rise after rebounding from its daily 200 moving average (MA) at $0.127. Maintaining this key indicator as support signaled new long-term strength, highlighting DOGE’s potential for a continued uptrend.
Price action remains resilient, with DOGE holding firmly above the $0.165 level, suggesting that the bulls are in control and could drive prices higher.
Despite the strong momentum, a healthy retracement to $0.165 – or even a demand level below $0.15 – would support the bullish structure, allowing DOGE to gather the liquidity needed for further upside. Maintaining these levels would allow DOGE to reach its next major objective: yearly highs around $0.228.
With bullish sentiment in the crypto market and DOGE showing strong technical indicators, many analysts view these price levels as potential stepping stones for another rally. Traders and investors will be closely watching for signs of strength or pullback as DOGE prepares for its next test.
Featured image of Dall-E, chart by TradingView