- The network activity of Dogecoin rose recently, with active addresses that are almost 200k nearly 200k in one day
- Doge’s 1-hour graph on Binance flashed a classically reversed head and shoulder pattern-a bullish indicator
At the time of writing, Dogecoin’s [DOGE] Activity on the chain indicated a possible shift in Momentum and drew the attention of traders and analysts. In fact, the formation of a bullish inverse head and shoulder pattern was referred to possible upward movement while network activity enriched one sign of increasing adoption.
Together these elements have formed the DOGE in the short term and provide insights into whether his price would break higher whether the charts would withdraw.
Source: Coinglass
Doge’s 1-hour graph on Binance showed a classically reversed head and shoulder pattern-a bullish indicator. The left shoulder was $ 0.150, the head dropped to $ 0.1438 and the right shoulder stabilized almost $ 0.160.
The neckline resistance was at $ 0.169, where the price consolidation took place. An outbreak above $ 0.169 could activate a rally to $ 0.185 – $ 0.190, which marks a potential benefit of 9%.
Technical indicators supported these prospects. The MACD line crossed above the signal line at 0.00041, with values of 0.00038 and -0.00003 that confirms bullish momentum. If Doge fails to break through $ 0.169, a retracement up to $ 0.150 can occur.
A drop below $ 0.167 can signal a bearish momentum, which leads to panic that sells to $ 0.1438. Long -term, persistent movement above $ 0.190 can focus on $ 0.250, but a false outbreak can send the price lower to $ 0.130.
Walking in adoption and its impact
Moreover, the network activity of Doge, with its active addresses, increased nearly 200k in one day – a level unseen since the last major rally.
The total addresses rose from 42k to 1.48 million, correlating with price jumps from $ 0.057 to $ 0.368. This increase gave the growing adoption, often prior price profits.
Source: Santiment
The historical trend suggested a connection between rising addresses and price stitches. In January 2024, comparable peaks led to more than 50% profits. So if active addresses continue to climb to 2m, Doge $ 0,500 could hit.
However, the falling acceptance can limit the upward potential, reducing the price to $ 0.150. If the growth of the address stagnates below 50k, Doge can get a sharp correction of up to $ 0.100.
Where do traders position their orders?
The Doge/USDT 1-hour graph emphasized a well-defined volume profile. The $ 0.165 – $ 0.167 zone showed considerable liquidity and was a support basis after a $ 0.200 decrease. The neckline at $ 0.169 acted as a resistance, with volume spikes at $ 0.1438 marking of key conversion points.
The Bullish Crossover of the MACD at 0.00041, with values of 0.00038 and -0.00003, reinforced up -to -date potential. Thus investors positioned purchase assignments at $ 0.165 – $ 0.167, which benefit from high liquidity.
An outbreak above $ 0.169 could activate, sells at $ 0.185 – $ 0.190, aimed at the next level of resistance. Conversely, if DOGE fall under $ 0.165, traders can set stop loss at $ 0.1438 to reduce the risk. Long-term volume extension to $ 0.200 can feed a move to $ 0.250, but falling liquidity below $ 0.150 can send doge to $ 0.130.
Finally, Doge’s technical and on-chain data hinted during a potentially breakout scenario. The reverse main and shoulder pattern, with support at $ 0.150, $ 0.1438 and $ 0.160, refers to Bullish Momentum if the price exceeds $ 0.169.
A breakout above $ 0.169 could drive doge to $ 0.250, supported by strong network growth and purchasing pressure. However, not to delete this level can lead to a withdrawal to $ 0.150, with a break under $ 0.165 that risks a decrease to $ 0.1438.
A sharp fall in active addresses or decreasing volume can push DOGE to $ 0.100.
Credit : ambcrypto.com
