Dogecoin network activity increases, and the DOGE price is at a key resistance level. New data shows Dogecoin recorded increased active addresses, a fundamental on-chain metric often leading to price rallies.
According to analyst Ali, as of May 13, the number of active addresses on the Dogecoin network had reached 127,570, the highest level in over a year. The rise in on-chain activity coincides with DOGE’s price trading near $0.24. At this stage, there are chances that this cryptocurrency will have a breakout.
The Glassnode chart tracking DOGE’s active addresses and price performance indicates renewed interest. From April 10 through early May, the number of active addresses remained relatively stable, between 60,000 and 80,000. However, starting around May 8, activity began to rise.
In just five days, active addresses nearly doubled, indicating a significant price recovery from a local low of $0.16 to almost $0.24. This synchronized surge in network activity and market value strongly suggests that accumulation is taking place.
Network Activity Leads to Optimistic Dogecoin Price
However, the bullish signals don’t stop at on-chain activity. Derivatives data from CoinGlass reveals a rise in market engagement. Open interest in Dogecoin futures has climbed to $3.03 billion, up $280 million from its recent low of $2.75 billion. This kind of capital influx indicates growing conviction among traders, especially as DOGE approaches resistance at $0.25.
The positive funding rate, currently at 0.0105%, shows that long positions are willing to pay short positions to keep their trades open. This signals strong underlying bullish intent, suggesting buyers are eager to maintain their bets despite Dogecoin’s sideways price movement. Such behavior typically precedes upward market moves, especially when the market moves heavily in one direction.
The Coinglass Liquidation Map, which highlights a cluster of short positions above the $0.25 mark, adds further fuel to the bullish narrative. If the Dogecoin price breaches this psychological barrier, the market could see up to $62.87 million in short liquidations. This would lead to more buy orders that accelerate the breakout. This “short squeeze” scenario has played out in previous Dogecoin rallies and could help move the price by over 50% to $0.368.
Is the $0.368 DOGE Price Realistic?
From a technical perspective, DOGE appears to be in the final stages of a bullish pattern. The price structure shows higher lows forming since early May, with resistance at $0.25 being tested multiple times. If bulls succeed in flipping this level into support, the next leg higher could be fast and steep.
Given the confluence of on-chain growth, derivative market enthusiasm, and technical momentum, a breakout to $0.368 is possible. This is nearly a 50% rally from current levels. Despite potential short-term volatility, the overall setup for Dogecoin suggests the market is preparing for an interesting move higher.
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