Current market signals thus point to the potential for further DOGE price increases, driven by increased network activity and strong investor sentiment.
The impressive comeback of Dogecoin
Dogecoin active addresses reached an all-time high, surpassing 1.33 million daily participants. This increase reflects increased demand on the network, a bullish indicator for the crypto in question. Indeed, increased participation is often correlated with rising prices, as high activity indicates strong investor interest and wider adoption of DOGE.
The increase in trading volume is a sign of widespread engagement, adding to Dogecoin's credibility. In the past, strong network activity has historically supported price gains, and this trend suggests that DOGE price could capitalize on its current momentum. Investor enthusiasm, combined with signals from the more general market, is thus likely to maintain upward pressure on the price of the same coin.
The Dogecoin Daily Active Address Divergence (DAA) indicator displays a strong buy signal, further reinforcing the encouraging outlook for Dogecoin price. This indicator highlights the harmony between rising prices and increasing participation, both of which reflect healthy growth. So, as network activity aligns with price movements, DOGE appears well positioned for further gains.
Additionally, macroeconomic factors, including the sustained rally in Bitcoin's price, are creating a positive environment for altcoins. Dogecoin's recent performance aligns with this more general trend, and with Elon Musk's influence on crypto, market enthusiasm continues to support the growth trajectory of this same coin.
Ensure earnings
Dogecoin price is currently holding above the $0.36 support level. To sustain its rally, it needs to break through and secure the $0.45 area as a support floor. This could then pave the way for further gains, with the price propelled even higher.
Bullish momentum remains supported by growing market demand and strong investor sentiment. If these factors persist, Dogecoin could benefit from continued accumulation, pushing its price to new highs. Optimism across the entire crypto market and renewed enthusiasm for the usefulness of DOGE also contribute to this positive outlook for its price.
However, a loss of the $0.36 support level could ultimately lead to a correction. In this case, DOGE could fall to $0.32 or even lower to $0.28. Any decline beyond $0.28 would negate the bullish thesis, signaling further downside potential.
Moral of the story: A Musk never forgets his DOGE.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
