3 Key Points
- Expanding network with an increase in new DOGE wallet addresses indicates a bullish momentum for Dogecoin.
- Recent spikes in daily active addresses and trading volume bolster the positive outlook for DOGE price.
- Dogecoin’s current price trend suggests a possible 7% rally, aiming to break through key resistance levels.
Surge in DOGE Wallets May Propel Price Upwards
The Dogecoin network is exhibiting signs of growth, characterized by a rising number of new DOGE wallet addresses. Such network activity expansion is a typical precursor of heightened investor interest and could potentially herald a price upswing for Dogecoin. Analysts are keeping a close eye on this metric as DOGE appears to be gearing up to challenge current market resistances.
Dogecoin’s On-Chain Data Backs Bullish Sentiment
On-chain analytics from the likes of Santiment reflect a boost in both DOGE active addresses and the overall transaction volume within specific periods in December. These indicators often authenticate the market’s optimism concerning the asset’s value trajectory.
Negative Sentiment Contrasts with Positive Indicators
Despite the weighted sentiment among market participants lingering in the negative territory on Sunday, the rising count of daily active addresses suggests otherwise. Often, an increase in active addresses could point to a surge in Dogecoin’s demand among traders and investors, thus providing a contrasting signal to the pervading negative sentiment.
Unprecedented DOGE Address Creation Spurs Demand
While analyzing the recent data from IntoTheBlock, an astonishing 110,540 new addresses were recorded on December 23 alone. A week-over-week addition signifying a 31.35% increase in new addresses implies that more market players are engaging with Dogecoin, which can be read as an uptick in demand for the cryptocurrency.
Current Uptrend and Technical Analysis
Dogecoin’s price trajectory has been steadily climbing since mid-October, displaying promising signs for those bullish on the meme currency. Resting comfortably above both the 50-day and 200-day Exponential Moving Averages, DOGE’s price indicates a robust uptrend. Moreover, if it overcomes the anticipated resistance levels situated at significant Fibonacci retracement points, Dogecoin may very well continue its march towards a price point not observed since the previous December.
With DOGE currently trading at $0.0930 on Binance, the digital currency remains a focal point for crypto market observers, anticipating whether the meme-based asset can indeed rally beyond its present resistance thresholds.