Dogecoin’s Number of New Addresses Increased By 1,100% — Is DOGE Ready For a New Uptrend?

Key Takeaways

• Dogecoin’s social sentiment has shifted towards bullishness.
• The newtwork expanded with 247,240 new DOGE addresses.
• There is the potential for Dogecoin’s price to hit new highs.

Recently, there has been a shift in sentiment towards Dogecoin (DOGE) on social media. A prominent member of Twitter’s crypto community, @Ali_Charts , highlighted what he deemed as a noteworthy development for Dogecoin on January 30th. 

According to Ali’s observation, Dogecoin experienced an increase in network growth, with a 1,100% rise in creating new DOGE addresses over the previous week. Specifically, there were 247,240 new DOGE addresses registered on January 29, 2024, setting a new record. 

Such an increase in network activity is often seen as a bullish indicator. This suggests DOGE could, potentially, rise soon.

Over the past few days, Dogecoin’s price has exhibited low volatility. A growing interest in Dogecoin prompts a closer examination to determine whether the coin might offer short-term gains.

DOGE Price Analysis 

Since reaching its all-time high in May 2021, Dogecoin has maintained a support level of slightly under $0.06. On October 13, the cryptocurrency began an upward trend, achieving an 85% recovery as it rose to $0.10 by December. 

This upward movement surpassed the previous trendline but halted when it met a horizontal resistance. This, in turn, led to a decline to $0.075 as of January 21.

Should Dogecoin enter a new bullish phase, a rebound is likely. In such a scenario, a new uptrend should happen, with DOGE potentially surpassing its December high. 

DOGE is could peak somewhere between $0.15 and $0.16. However, it could continue upwards and maybe even hit new heights.

However, if the price goes below $0.75, we could see further decreases and a potential revisit of the previous low of $0.057. 

Dogecoin Social Sentiment is Bullish

This price decrease adversely affected Dogecoin’s social metrics, leading to a reduction in its social volume in recent days. 

However, despite this negative price trend, the sentiment surrounding DOGE has turned bullish, as indicated by an increase in its weighted sentiment on January 30, 2024.

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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