Dogecoin broke out of a descending channel pattern, with analysts projecting potential price targets of $0.40-$0.44
On-chain data shows $0.36 is the next major resistance level, where 3.8% of DOGE supply was last purchased
DOGE active addresses surged 528% to 469,477 following SEC acknowledgment of 21Shares’ spot ETF filing
Futures open interest rose 70% to $1.65 billion despite price pullbacks
DOGE is currently trading around $0.237, up more than 37% in the last seven days
Dogecoin has been experiencing a strong resurgence in the crypto market, with its price climbing steadily amid growing network activity and potential ETF developments. At the time of writing, DOGE is trading around $0.237, representing an impressive gain of over 37% in just the past week.
The memecoin’s recent performance comes as it broke free from a descending channel pattern that had confined its price movement for months. This technical breakout has sparked optimism among traders and analysts about DOGE’s near-term prospects.
On-chain data provides valuable insight into where Dogecoin might face challenges on its upward journey. According to analyst Ali Martinez, the UTXO Realized Price Distribution (URPD) shows that the next major resistance level for DOGE sits at approximately $0.36.
This price point is particularly important because it represents the cost basis for about 3.8% of all existing DOGE tokens. In simpler terms, a significant number of investors last purchased their Dogecoin at this level.
From a psychological perspective, these price points can trigger specific behaviors from investors. When a cryptocurrency approaches the price level where many holders originally bought in, those investors who’ve been waiting to break even may choose to sell, creating resistance.
Network Activity Explodes
One of the most telling indicators of Dogecoin’s renewed momentum is the dramatic increase in network activity. On May 13, DOGE witnessed a staggering 528% surge in active addresses, jumping from 74,640 to 469,477 in a single day.
This explosion in user activity followed an important regulatory development. The US Securities and Exchange Commission (SEC) acknowledged 21Shares’ filing for a spot Dogecoin ETF, a step that many see as progress toward potential mainstream adoption of the memecoin.
The ETF filing news has apparently catalyzed market interest, with financial firms like Bitwise and Grayscale also pursuing similar Dogecoin investment products. This growing institutional interest represents a potential legitimization of DOGE beyond its meme origins.
Beyond simple user activity, futures market data also points to growing speculator interest. According to Glassnode data, DOGE futures open interest increased by 70% over the past week, rising from $989 million to $1.65 billion.
What makes this metric particularly interesting is that this growth occurred despite some price pullbacks from recent highs. This decoupling between price and futures interest suggests persistent speculative positioning that could drive future price volatility.
Spot buying pressure has also remained strong for Dogecoin. Technical indicators show that DOGE’s spot taker 90-day cumulative volume delta is currently “taker buyer dominant,” indicating more aggressive buying than selling since early March of this year.
Technical Outlook
From a technical analysis perspective, several patterns are emerging that support a positive outlook for Dogecoin’s price action. Crypto analyst Jonathan Carter has identified that DOGE has officially broken out of a long-term descending channel on the 3-day chart.
Prior to this channel, Dogecoin was trading within a falling wedge pattern in late 2023. After breaking out of that pattern, DOGE rallied to nearly $0.45 before beginning its channel-bound correction.
Now that Dogecoin has broken through the upper boundary of the descending channel, analysts have identified several potential price targets. The immediate levels of interest include $0.287 and $0.340, with the previous high of $0.445 representing a mid-term target.
Another analyst using the Wyckoff market schematic suggests that DOGE has officially exited the accumulation zone and entered the mark-up phase on the weekly chart. This transition between market phases often precedes sustained upward price movements.
This view is supported by Dogecoin’s Relative Strength Index (RSI), which has crossed above its Exponential Moving Average (EMA). This crossover is frequently interpreted as a signal of growing bullish momentum in the early stages of a trend expansion.
Support levels have also been established, with a key zone around $0.092 identified as a barrier that could prevent steeper price breakdowns should Dogecoin experience a pullback.
At $0.237, Dogecoin currently sits between two key on-chain levels – a support at $0.21 (where 7.5% of DOGE supply was last purchased) and the aforementioned resistance at $0.36. How the price navigates between these levels will likely determine its medium-term trajectory.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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