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DOGE is showing strong signs that a rally may be on the horizon. On-chain data is painting a bullish picture, with several key indicators turning positive.
In Brief
- DOGE’s active addresses have jumped 528%, indicating rising investor interest.
- DOGE recently broke out of important technical patterns, suggesting a bullish reversal.
- Analysts are targeting $0.40 as the next key level, with some predicting $1 during a bull cycle.
Rising DOGE On-Chain Activity Shows Growing Investor Interest
Crypto analyst Ali Martinez, on May 15, revealed a jump in active addresses, transaction volume, and whale activity for DOGE. According to him, these are all signs that momentum is building. In another post, he noted that whales have scooped up over 1 billion DOGE in the last month alone.
Adding to the optimism, ChainGPT AI, an AI aggregator on X, reported a massive 528% surge in active addresses, reaching 469,000. It also noted that futures open interest jumped 70% to $1.65 billion. According to the AI, with rising demand and renewed ETF excitement, analysts are eyeing a potential move to $0.40. It also pointed out that a bullish inverse head-and-shoulders pattern is forming on the charts, further strengthening the bullish case.
Increased whale activity is particularly important, as it can signal smart money positioning before a price surge. When whales move, retail traders often follow, boosting market momentum and triggering a fear of missing out (FOMO), which can accelerate buying pressure.
Technical Breakouts Signal a Bullish Reversal
At the moment, Dogecoin is trading around $0.22, down slightly by less than 1% in the last 24 hours. But technically, it looks like the coin has already broken out of key resistance zones.
In early May, DOGE broke out of a descending wedge pattern that started last November after the price hit $0.48. The breakout happened on May 10, marked by a strong bullish candle and a spike in trading volume. This is usually a sign that the downtrend has ended and a new uptrend could be about to start.
After the breakout, DOGE pulled back slightly to test the upper boundary of the wedge. If this level holds as support, it would confirm the bullish trend.
DOGE also exited a sideways trading range that began in March. The fact that both breakouts happened around the same time makes the overall move even more convincing.
Momentum indicators support the upward trend. The MACD line is above the signal line, and both are in positive territory, pointing to continued strength. The histogram remains in the green, though the bars are getting smaller, which may hint at a slowdown.
The RSI is currently at 61, indicating there’s still room for the price to climb. Its upward trend also reinforces the positive outlook.
Key Resistance Levels and Analyst Price Targets for Dogecoin
The next major resistance is at $0.30. If DOGE breaks that level, it could target $0.45—a previous local high before the last downtrend began. Some traders, like Trader Tardigrade, expect a short period of consolidation before a final push toward $0.40.
Another analyst, Alts King, believes DOGE is gaining momentum and could reach $0.48 in the near term if the current trend continues.
Looking ahead, $0.40 is a common short-term target among analysts. It could serve as a psychological magnet for Dogecoin’s price as upward momentum builds. Some analysts are even eyeing the $1 mark in the bull cycle. Strong buying pressure and DOGE’s recent performance—surpassing Ethereum and XRP—could both fuel Dogecoin’s next big move.
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Ifeoluwa specializes in Web3 writing and marketing, with over 5 years of experience creating insightful and strategic content. Beyond this, he trades crypto and is skilled at conducting technical, fundamental, and on-chain analyses.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
