- Dogecoin’s network activity surged recently, with active addresses nearing 200k in a single day
- DOGE’s 1-hour chart on Binance flashed a classic inverse head-and-shoulders pattern – A bullish indicator
At the time of writing, Dogecoin’s [DOGE] on-chain activity hinted at a potential shift in momentum, drawing attention from traders and analysts. In fact, the formation of a bullish inverse head-and-shoulders pattern alluded to possible upward movement while network activity spiked – A sign of increasing adoption.
These elements, together, have shaped DOGE’s short-term outlook, providing insights into whether its price would break higher or retreat on the charts.
Source: Coinglass
DOGE’s 1-hour chart on Binance displayed a classic inverse head-and-shoulders pattern – A bullish indicator. The left shoulder formed at $0.150, the head dipped to $0.1438, and the right shoulder stabilized near $0.160.
The neckline resistance sat at $0.169, where price consolidation occurred. A breakout above $0.169 could trigger a rally toward $0.185–$0.190, marking a potential 9% upside.
Technical indicators supported this outlook. The MACD line crossed above the Signal line at 0.00041, with values of 0.00038 and -0.00003 confirming bullish momentum. If DOGE fails to breach $0.169, a retracement to $0.150 might occur.
A drop below $0.167 might signal bearish momentum, leading to panic selling towards $0.1438. Long-term, sustained movement above $0.190 could target $0.250, but a false breakout might send the price lower to $0.130.
Hike in adoption and its impact
Additionally, DOGE’s network activity surged, with its active addresses nearing 200k in a single day – A level unseen since its last major rally.
The total addresses rose from 42k to 1.48M, correlating with price jumps from $0.057 to $0.368. This uptick indicated growing adoption, often preceding price gains.
Source: Santiment
The historical trend suggested a link between rising addresses and price surges. In January 2024, similar spikes led to over 50% gains. Thus, if active addresses continue to climb towards 2M, DOGE could hit $0.500.
However, declining adoption might limit upside potential, pulling the price back to $0.150. If address growth stagnates below 50k, DOGE could face a sharp correction to $0.100.
Where are traders positioning their orders?
The DOGE/USDT 1-hour chart highlighted a well-defined volume profile. The $0.165–$0.167 zone displayed significant liquidity, forming a support base following a decline from $0.200. The neckline at $0.169 acted as resistance, with volume spikes at $0.1438 marking key reversal points.
The MACD’s bullish crossover at 0.00041, with values of 0.00038 and -0.00003, reinforced upward potential. Thus, investors positioned buy orders at $0.165–$0.167, taking advantage of high liquidity.
A breakout above $0.169 could trigger sells at $0.185–$0.190, targeting the next resistance level. Conversely, if DOGE fell below $0.165, traders might set stop-losses at $0.1438 to mitigate risk. Long-term, volume expansion towards $0.200 could fuel a move to $0.250, but declining liquidity below $0.150 might send DOGE to $0.130.
Finally, DOGE’s technical and on-chain data hinted at a potential breakout scenario. The inverse head-and-shoulders pattern, with support at $0.150, $0.1438, and $0.160, alluded to bullish momentum if the price surpasses $0.169.
A breakout above $0.169 could propel DOGE to $0.250, supported by strong network growth and buying pressure. However, failure to clear this level might result in a pullback to $0.150, with a break below $0.165 risking a drop to $0.1438.
A sharp decline in active addresses or decreasing volume could push DOGE to $0.100.
