Dogecoin Activity Surge Signals Potential Rally
Dogecoin address activity surged 111%, indicating strong interest ahead of a potentially massive rally. Historical patterns suggested that Dogecoin could see a 12,000% rally as whales ramp up transactions.
Price Trend Overview
Dogecoin (DOGE) has shown a recurring trend of sharp price increases followed by corrections. In 2017, DOGE climbed 212%, retraced 40%, and then gained 5,000%. Similarly, in 2021, it rose 476%, corrected by 56%, and later surged 12,000%.
In 2024, Dogecoin followed a comparable trajectory, increasing by 440% from $0.065 to $0.39547 before retracing 46%.
According to crypto analyst Ali, this pattern suggests the potential for another significant rally if the trend continues as it has in previous cycles.
Current Price Action and Critical Levels
As of press time, Dogecoin was trading at $0.3167, reflecting a 1.43% decline over the last 24 hours and a 21.23% drop in the past week. The cryptocurrency has a market capitalization of $46.66 billion and a 24-hour trading volume of $4.37 billion.
Price data indicates DOGE is holding within its long-term logarithmic price channel. Support levels are noted at $0.065 and $0.19-$0.20, while resistance is at $0.39547 and $0.73665, the record high set in 2021. Analysts project a potential upper boundary of $17.94 if Dogecoin maintains its historical upward trend within this channel.
Increased On-Chain Activity
Data from IntoTheBlock indicates a rise in network activity. As of November 11, active addresses totaled 136,850, with 58,990 new addresses created. Over the past week, new addresses rose by 102.40%, active addresses by 111.32%, and zero-balance addresses increased by 155.33%.
The growth in address activity coincided with Dogecoin’s recent price move to $0.40. Increased participation suggests a resurgence in interest from both retail and institutional investors.
Large transactions involving Dogecoin have also seen an uptick. Over the past week, whale transactions peaked at 9,410, aligning with the recent price surge, marking a significant increase from the weekly low of 2,450 transactions observed on November 8.
Market data from Coinglass show trading volume down by 24.83% to $7.42 billion, while Open Interest (OI) in futures contracts declined by 4.71% to $1.95 billion. In options trading, volumes dropped 58.52% to $427.08 million, with OI in options contracts at $1.18 million.
With historical trends, increasing address activity, and large transactions aligning, the data suggests that Dogecoin may be positioning itself for another significant price movement.
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