At the time of writing, Dogecoin was leading the charts with the highest number of short-term traders Doge’s price trend looked poised for further upside after the breakout
For meme coins, the activity of short-term traders plays a key role, especially since these tokens are primarily driven by hype and speculation. Among them, Dogecoin (DOGE) currently leads the way with the highest number of active short-term traders.
According to IntoTheBlock, DOGE was at the top of the charts, boasting over 110,000 short-term traders over the past seven days. This allows DOGE to perform well in the meme coin space.
In this chart, DOGE is followed by Shiba Inu (SHIB) and Degen (DEGEN). However, despite SHIB’s larger market capitalization, Degen matched its 23,000 value. In fact, Degen also outperformed other medium-sized meme coins.
Source: Into the Block/X
DOGE looks ready to pop
Now, if we analyze the chart of DOGE on the weekly time frame, a potential upside appears to be imminent. DOGE has been in a long correction with intermittent short-term gains since its peak of $0.75 in 2021.
Recently, the DOGE/USDT pair broke above the downtrend line. This indicates that it may be poised for further upside in the near future.
This breakout could push DOGE towards $0.4 if further bullish momentum and sentiment supports this move. With the key resistance level broken, traders are now focused on whether this breakout will be confirmed.
Source: TradingView
On-chain metrics on the rise
Dogecoin’s on-chain activity provides further evidence of the potential for significant price increases. Consider this – the number of active addresses is at its highest since April 1st, with weekly activity up 199%.
Additionally, the total number of addresses holding balances is at an all-time high, averaging 6.6 million over the past 30 days.
Source: Into the Block
The new introduction rate, which dropped sharply in March 2024, is also showing a slight recovery trend. Currently, a value above 26% is a signal of growing confidence in DOGE, confirming the potential for price appreciation.
Taken together, these indicators seemed to suggest that DOGE could see sustained gains. Especially on higher timeframes.
DOGE and BTC cyclical moment
Dogecoin has historically experienced the largest price increases during Bitcoin’s parabolic movements.
Once Bitcoin broke through its all-time high resistance level, Dogecoin followed suit with an even more aggressive rally. DOGE is currently in a similar cyclical period, which could mean Bitcoin is preparing for another big rally.
If history repeats itself, Dogecoin could soar again on the back of its strong fundamentals and trader interest.
Source: X
Although market trends remain unpredictable, it is clear that DOGE could rise further. Traders should keep an eye on key levels and monitor overall market sentiment for further confirmation of a bullish breakout.
Next: Does Solana’s recovery mean good news for SOL’s price action?
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