Dogecoin (DOGE) has faced bearish pressure recently, causing its price to drop by almost 11%. However, whale activity and a surge in network transactions offer positive signs for a potential recovery.
These bullish signals have caught investors’ attention, as crucial on-chain metrics suggest that a price reversal could be on the horizon. Moreover, analysts believe these developments could push DOGE’s price higher.
Dogecoin Price Set for Reversal, Say Analysts
Analysts believe Dogecoin’s price could soon bounce back after its recent correction. Crypto market expert Ali Martinez has highlighted the potential for a bullish rally driven by the MACD indicator.
The last two times #Dogecoin $DOGE had a MACD bullish crossover on the weekly chart, it rallied 90% and 180%, respectively.
A new MACD bullish crossover could be forming soon! pic.twitter.com/1YfefMe36i
— Ali (@ali_charts) October 2, 2024
Martinez noted that the last two MACD bullish crossovers led to 90% and 180% price surges, respectively. If this pattern repeats, Dogecoin could rise to $0.20 or even $0.30.
Many investors are watching this critical technical indicator, anticipating a significant upward breakout.
Whale Activity Remains High Despite Price Dip
The price of DOGE is down nearly 11% over the past 24 hours. Despite the depressing outlook, whale activity has increased to a four-month high.
On-chain data from Santiment shows that while whales took some profits recently, they remain highly engaged with Dogecoin.
🐶 Dogecoin has retraced -18% from its top back on Saturday. But on-chain activity indicates that whales may not be done with all the bullish momentum of crypto’s top meme coin. Though they took profit just before the top, their activity remains very high on DOGE’s network. pic.twitter.com/FsmWJGkSE6
— Santiment (@santimentfeed) October 2, 2024
Whale interest might drive more positive momentum for the altcoin, making a price rebound likely soon.
Surge in Dogecoin Active Addresses
Another critical sign of Dogecoin’s growing popularity is the sharp rise in DOGE holding on the network. Santiment reported that wallets between 0 and 100 DOGE have 4.77 million addresses.
That’s an increase of 0.33% in the last 30 days, suggesting more new users holding a small amount of DOGE.
Further, mid-size wallets holding 1,000 to 10,000 DOGE grew by 0.32%, while wallets holding 10k to 100k increased by 0.82%. Larger wallets holding 1 million to 1 billion DOGE rose by 3.03%.
This increase points to growing interest in the memecoin, further supporting the potential for higher network activity.
Crypto analyst Ali revealed on X (formerly Twitter) that the number of new Dogecoin addresses grew by 72% in the past week. According to the X post, 19,630 new addresses were created on Monday alone.
The #Dogecoin network is experiencing significant growth! Over the past week, there’s been a 72% increase in new $DOGE addresses, and just yesterday alone, 19,630 new #DOGE addresses were created! pic.twitter.com/5Tj8ZvcxUu
— Ali (@ali_charts) October 1, 2024
This surge suggests that more people are getting involved in Dogecoin and possibly preparing for an upcoming bull rally.
Dogecoin’s Ecosystem Continues to Grow
In addition to price movements and network activity, Dogecoin’s ecosystem is expanding with ongoing projects to boost its utility and adoption. Projects like LibDogecoin, GigaWallet, and RadioDoge are designed to improve Dogecoin’s transaction capabilities.
The Dogecoin Foundation has been working to ensure that these initiatives continue to drive growth, positioning DOGE as a top contender. These developments will likely enhance Dogecoin’s scalability and usability and increase its long-term value.
While the price has pulled back recently, the indicators remain bullish, with many investors anticipating a recovery. If the MACD crossover materializes, Dogecoin could experience significant upward momentum.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
