Dogecoin (DOGE) is making headlines once again as its active addresses have reached a new all-time high of 9.52 million. This surge in network activity comes on the heels of a 107% price increase over the last 30 days, sparking speculation about the meme coin’s potential to hit $1. However, while the possibility of reaching this milestone exists, on-chain metrics indicate that it may take longer than expected.
The number of active addresses on the Dogecoin network has seen a significant uptick, jumping from under 1 million on October 31 to the current record-breaking 9.52 million. Active addresses are a crucial metric for evaluating user engagement and blockchain activity. A rise in active addresses usually signifies a growing number of users interacting with the network, indicating increased adoption and interest in the cryptocurrency.
Despite the bullish signal of rising active addresses, Dogecoin’s trading volume has decreased, dampening immediate gains. On December 5, DOGE’s trading volume exceeded $15 billion, leading to a price increase to $0.48. However, the trading volume has since dropped to $6.6 billion, suggesting a decline in market interest. This trend could pose challenges for Dogecoin as it aims to climb towards $1, potentially struggling to maintain its value above $0.45.
In terms of technical analysis, the 4-hour chart for DOGE shows that the price has fallen below the 20-period Exponential Moving Average (EMA). This indicates a potential bearish market trend, with the price currently at $0.435. The Fibonacci retracement level points to a possible drop to around $0.42 or $0.406 if the downward pressure continues. However, if Dogecoin manages to rise above the EMA, it could signal a trend reversal, allowing the price to break past $0.48 and make a push towards $1.
Dogecoin’s recent surge in network activity reflects growing interest in the cryptocurrency. However, challenges such as declining trading volumes and resistance at $0.48 present obstacles. Overcoming these barriers could propel DOGE further towards the highly anticipated $1 milestone.
It is essential to note that the information provided in this article is for informational and educational purposes only and should not be considered financial advice. Readers are advised to exercise caution and conduct their own research before making any investment decisions related to Dogecoin or any other cryptocurrency.