Dogecoin has witnessed a massive spike in its active addresses, providing a bullish outlook for the foremost meme coin. Based on this development, the DOGE price could also witness a bullish reversal soon enough as it reclaims key support levels.
Dogecoin Records 47% Spike In Active Addresses
In an X post, crypto analyst Ali Martinez stated that Dogecoin’s network activity is picking up. This came as he revealed that active addresses have jumped 47% in the past month, rising from 110,000 to 163,000. This development is bullish as it indicates more users are using the network.
This could help spark a significant rally in the Dogecoin price, as a surge in active addresses indicates that DOGE’s utility is on the rise. Another onchain metric which paints a bullish picture for the meme coin and hints at a reversal is the increase in new addresses. In another X post, Martinez revealed that Dogecoin’s new addresses have doubled in the past month, climbing from 16,400 to 34,600.
The crypto analyst suggested that the Dogecoin price might rebound soon. He revealed that DOGE is printing a bullish reversal doji on the weekly chart. His accompanying chart showed that the foremost meme coin could reclaim the psychological $0.2 support level and rebound to as high as $0.28.
In another post, Martinez stated that the Dogecoin price remains at a key support level within an ascending channel. He remarked that if this support holds, a rebound towards the mid or upper boundary could be in play. His accompanying chart showed that the mid boundary puts DOGE at $3 while the upper boundary puts the meme coin at just above $18.
DOGE May Have Already Reached The Bottom
In an X post, crypto analyst Trader Tardigrade suggested that the Dogecoin price may have already reached the bottom. He noted that DOGE has been following a particular macro channel since its inception, and historically, deviations have occurred at the channel’s edges. However, he added that if the foremost meme coin remains within the channel without deviation this time, then it has already reached the bottom.
In another post, Trader Tardigrade stated that he believes the Dogecoin price will outperform most altcoins in the coming months, further providing a bullish outlook for the meme coin. In the meantime, DOGE needs to break above $0.17 to reverse its current downtrend.
The analyst revealed that a resistance trendline is sitting above the meme coin on the 4-hour chart. He added that Dogecoin must break this trendline, which is currently at $0.17, to witness a bullish reversal.
At the time of writing, the Dogecoin price is trading at around $0.168, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com
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