Dogecoin Revival: Active Addresses Skyrocket To Highest Level In 8 Months
An expert believes that Dogecoin is on the verge of a huge price rally never seen since December 2021 as the cryptocurrency landscape showed it is ready for a breakout.
Crypto analyst Ali Mrtinz weighed in on the coins technical landscape, saying Dogecoins price could rise to 200% in the upcoming weeks if the current pattern of indicators continues.
Dogecoins Price On The Rise
Martinez observed that Dogecoin was able to break out from a multi-year downward trend, noting that this usually led to an upsurge in the meme coins price. He noted that historically, the coins price rose by 200% after breakouts.
History often repeats itself, and #Dogecoin might be doing just that.
A familiar pattern: breakout from a multi-year descending triangle, 200% surge, 60% retracementthen a bull run.
After a recent 65% pullback, $DOGE could be gearing up for the next big rally! pic.twitter.com/c93A4Fec7V
Ali (@ali_charts) October 6, 2024
He predicted that Dogecoin could potentially breach the $0.2236 mark, level not seen since Dcmbr 2021.
In late September, the token experienced a breakout, leading to a 25% price surge. However, Dogecoin failed to sustain the price rally, falling off once again to $0.11.
Other analysts shared the same forecast saying that if the coin successfully got ahead of the $0.1120 level, it would likely breach the $0.1315 mark easily this month.
Howvr, analysts urged traders to be cautious with the potential price rally of Dogecoin, noting that 60% rtrcmnt usually preceded in previous brkouts bfor it gained momentum for an upwrd trend.
A Key Driver Of Growth
An increase in Dogecoins active addresses is a primary reason why analysts are banking on a possible huge price rally for the cryptocurrency.
Mrtinz revealed that ctiv DOGE ddrsss recorded its highest level in the last eight months, surging to 133,880.
Active #Dogecoin addresses recently surged to 133,880the highest level in 8 months! pic.twitter.com/DojEsDscXk
Ali (@ali_charts) October 12, 2024
This rise of active addresses indicates that people are regaining their interest in the coin, noting a recent spike of nw usrs. It also implies that the additional traders are helping push for the tokens growth.
For example, about 110,000 investors flocked to Dogecoin, putting the token ahead of its cryptocurrency rivals Shib Inu and Pp. The growth in trading volume showed that the coin is regaining its appeal to traders seeking for a quick profit.
Whale Activity Surged
Experts also see whl ctivity as another driver in the resurgence of Dogecoin. In over a week, whales, large holders of the meme coin, have accumulated at least 2.07 billion DOGE, which is the lrgst sinc Jnury.
The amassing demonstrated traders growing confidnc in the token. In past instances, huge buying usually resulted in significant pric adjustments, serving as indicators of upcoming mrkt trnds. One analyst noted that whales do not make lrg purchases unless they see a pric growth in the future.
Featured image from CNBC, chart from TradingView
Source: NewsBTC.com
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Text source: Crypto Breaking News
