Dogecoin Active Addresses EXPLODE 528% — Will DOGE Price Reach $0.40?

Attention Dogecoin enthusiasts and market watchers! Something significant is happening in the world of the popular memecoin. Recent data shows a massive surge in Dogecoin active addresses, reaching levels not seen in a long time. This sudden burst of activity often signals growing interest and could potentially impact the DOGE price trajectory. Let’s dive into the details and see what’s driving this excitement.

Why Are Dogecoin Active Addresses Surging?

The primary catalyst behind the remarkable increase in Dogecoin active addresses appears to be recent news surrounding a potential spot DOGE ETF. On May 13, the number of active addresses on the Dogecoin network jumped by an astonishing 528%, climbing from 74,640 to 469,477 in a single day. This surge coincided with the US Securities and Exchange Commission (SEC) acknowledging an updated filing from 21Shares for a spot Dogecoin exchange-traded fund (ETF).

This acknowledgement, confirmed by 21Shares, is a key development. While not an approval, it signifies the SEC is reviewing the proposal. Similar filings by firms like Bitwise and Grayscale suggest a growing push for mainstream investment products centered around DOGE. Increased network activity, as shown by the active address data from Glassnode, reflects this renewed investor interest and market optimism following the ETF news.

Beyond Active Addresses: What Else Fuels DOGE’s Momentum?

The surge in active addresses isn’t the only metric painting a bullish picture for Dogecoin. Other data points also indicate strong market dynamics:

• Futures Open Interest: Glassnode data reveals a significant 70% rise in DOGE futures open interest over the past week, from $989 million to $1.65 billion. This substantial increase, even amidst a price pullback, suggests persistent speculative positioning and high confidence among futures traders. This is a trend worth monitoring for potential volatility.
• Spot Buyer Demand: Analysis of the 90-day cumulative volume delta (CVD) indicates that spot buyers have been dominant since early March. This pattern of aggressive buying preceded a significant rally for DOGE in a previous quarter, highlighting its potential impact on DOGE price.
• Long-Term Holder Sentiment: The Net Unrealized Profit/Loss (NUPL) for Dogecoin holders who have held for at least 155 days recently crossed the 0.5 threshold. This metric is often associated with an optimistic ‘belief’ sentiment among long-term holders, suggesting they expect further price appreciation.

Combined, these factors – surging active addresses, high speculative interest, strong spot buyer demand, and optimistic long-term holder sentiment – create a compelling picture of robust market analysis supporting potential upward movement for DOGE.

Will DOGE Price Follow the Network Activity?

The big question for many is whether this surge in network activity and positive market analysis will translate into a significant DOGE price increase. Cryptocurrency analysts are watching key technical levels.

Analyst Trader Tardigrade points out that DOGE has hit a significant resistance level around $0.24. A breakout above this point could be a strong bullish signal. Should DOGE successfully clear this resistance, the next potential target is $0.40, indicating healthy upward momentum.

Adding to the bullish outlook, Dogecoin proponent Kriss Pax highlighted an inverse head-and-shoulders pattern on the 1-day chart. This pattern is typically seen as a bullish indicator, suggesting a potential surge towards $0.42 upon a confirmed breakout. As Kriss Pax noted, while there might be opportunities for buying dips or swing trading, being positioned for a potential takeoff is key.

While the technical indicators and on-chain data are promising, it’s important to remember that the crypto market is volatile. However, the combination of growing network participation fueled by the spot DOGE ETF news, strong speculative and spot buying interest, and optimistic holder sentiment provides a solid foundation for potential price appreciation.

Summary

Dogecoin has seen a dramatic 528% increase in active addresses, largely driven by the SEC’s acknowledgement of a potential spot DOGE ETF filing. This surge in network activity is supported by other bullish indicators, including high futures open interest, dominant spot buyer volume, and optimistic long-term holder sentiment. Market analysis suggests that if DOGE can break through key resistance levels around $0.24, price targets of $0.40 or $0.42 could be within reach, potentially mirroring the strong network growth observed.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.