Dogecoin Price Eyes Potential Reversal Amid Market Pressure

Dogecoin Price Eyes Potential Reversal Amid Market Pressure

Dogecoin News – After a strong rally last week, Dogecoin, the world’s largest meme coin, has experienced some selling pressure. Over the last 24 hours, DOGE has corrected by 8%, now trading at $0.1085, with its market capitalization slipping below $16 billion. However, market analysts suggest that a trend reversal could be imminent, based on promising on-chain metrics.

Technical Indicators Point to a Potential Dogecoin Rally

According to crypto market analyst Ali Martinez, Dogecoin (DOGE) might be on the verge of a significant rally. The Moving Average Convergence Divergence (MACD) indicator shows signs of a potential bullish crossover on the weekly chart. Historically, the last two instances of a MACD bullish crossover resulted in DOGE surging by 90% and 180%, respectively. Should this pattern repeat, Dogecoin could see its price climbing to $0.20 or even $0.30.

With technical indicators hinting at the formation of another MACD bullish crossover, investors are keeping a close eye on the meme coin for a possible breakout.

In addition, recent developments in the Dogecoin ecosystem aim to enhance its adoption and utility. For example, the Dogecoin Foundation is actively working on projects like LibDogecoin, GigaWallet, and RadioDoge, which seek to improve transaction capabilities and expand Dogecoin’s reach, particularly in regions with limited connectivity.

Whale Activity and Address Growth Indicate Strong Momentum

Despite a 18% pullback from its recent peak, on-chain data from Santiment shows that whale activity remains high, which could signal bullish momentum for DOGE. While many whales took profits before the recent peak, their overall activity on the Dogecoin network has reached a four-month high, suggesting they may not be done with the asset.

Additionally, Dogecoin has seen a notable rise in active addresses, reaching 84,306—its highest level in seven months. The surge in daily active addresses reflects growing interest in the meme coin, potentially driving more network activity.

Amid these bullish on-chain indicators, Dogecoin’s supporters could be setting the stage for an “Uptober” rally, potentially leading to a larger bull run in 2024.