At press time, Dogecoin tops the list of short-term traders
DOGE price action appears poised for further gains following the breakout
The activity of short-term traders plays a vital role in memecoins, especially since these tokens are primarily driven by hype and speculation. Among them, Dogecoin (DOGE) is currently in the lead with the highest number of active short-term traders.
According to IntoTheBlock, DOGE tops the list with over 110,000 short-term traders in the past seven days. This makes DOGE an outstanding performer in the memecoin space.
Following DOGE in this chart are Shiba Inu (SHIB) and Degen (DEGEN). However, despite SHIB’s larger market cap, Degen’s market cap is comparable to SHIB’s 23k. In fact, Degen has outperformed other mid-cap memecoins as well.
DOGE appears ready
Now, analyzing DOGE’s weekly chart, a potential rebound appears imminent. Since reaching a peak of $0.75 in 2021, DOGE has been in a long correction phase punctuated by short-term rebounds.
Recently, the DOGE/USDT pair broke above the downtrend line. This suggests that it might be ready to move higher in the near future.
This breakout could push DOGE to $0.4 if further bullish momentum and sentiment support the move. With the key resistance level now breached, traders are now eyeing confirmation of this breakout.
Growing on-chain metrics
Dogecoin’s on-chain activity further proves its potential for a significant price increase. Consider this — the number of active addresses has hit an all-time high since April 1, with weekly activity up 199%.
Additionally, the total number of addresses holding balances has climbed to an all-time high, averaging 6.6 million over the past 30 days.
The new adoption rate has also seen some recovery after a sharp decline in March 2024. Currently, values over 26% indicate growing confidence in DOGE, supporting the possibility of price increases.
Taken together, these indicators seem to suggest that DOGE could achieve sustained growth, especially over longer time frames.
Cyclical moments for DOGE and BTC
Historically, Dogecoin has experienced its most significant price gains during Bitcoin’s parabolic moves.
When Bitcoin broke through its all-time high resistance, Dogecoin followed suit and had an even stronger rally. Dogecoin is currently at a similar cyclical moment where Bitcoin may be preparing for another big rally.
If history repeats itself, Dogecoin could surge again, supported by its strong fundamentals and trader interest.
While market dynamics remain difficult to predict, the potential for DOGE to rise is clear. Traders should keep an eye on key levels and monitor overall market sentiment for further confirmation of a bullish breakout.
