After a solid run-up last week, the world’s largest meme coin Dogecoin has been facing some selling pressure with the DOGE price correcting 8% in the last 24 hours now trading at $0.1085 and market cap slipping under $16 billion. However, market analysts believe that DOGE could be seeing a trend reversal to the upside anytime soon as per some on-chain metrics.
Dogecoin Price Reversal Soon
Crypto market analyst Ali Martinez stated that Dogecoin (DOGE) could be on the brink of a major rally moving ahead as per the MACD indicator. He noted that the last two times of a MACD bullish crossover on the weekly chart, the meme coin surged by 90% and 180% respectively. Thus, if the DOGE price repeats this, we can see it surge to 20 cents and 30 cents respectively.
The last two times #Dogecoin $DOGE had a MACD bullish crossover on the weekly chart, it rallied 90% and 180%, respectively.
A new MACD bullish crossover could be forming soon! pic.twitter.com/1YfefMe36i
— Ali (@ali_charts) October 2, 2024
With technical indicators suggesting that another MACD bullish crossover may be forming, investors are closely watching for a potential upward breakout in Dogecoin’s price.
Additionally, the recent developments within the Dogecoin ecosystem aim to improve its adoption and utility. For e.g. the Dogecoin Foundation has been already working on projects like LibDogecoin, GigaWallet, and RadioDoge, that seek to boost the network’s transaction capabilities and expand the meme coin’s reach to regions with limited connectivity.
Whale Activity and Active Addresses on the Rise
On-chain data provider Santiment reported that the Dogecoin price has retraced more than 18% from its peak last Saturday. However, despite this price pullback, the DOGE whale activity also remains high thereby fueling bullish momentum for the altcoin.
While whales took profits prior to the recent peak, their activity on the Dogecoin network remains elevated hitting a 4-month high. This indicates they may not be done with the asset just yet. This continued activity could signal further price action in the near future.
Courtesy: Santiment
Additionally, Dogecoin is also seeing the largest surge in active addresses in the last 7 months, reaching 84,306 active DOGE addresses. The rise in daily active addresses indicates increasing interest in the meme coin, which could drive higher network activity.
Amid these bullish on-chain indicators the bulls might be preparing for an Uptober rally thereby gearing up for a 2024 bull run.
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