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Dogecoin Adoption Surges—Can It Fuel a Breakout Past $0.20?
The price of Dogecoin (DOGE) has been experiencing volatility lately, and recent developments might be setting the stage for a significant turnaround. Despite the broader market weakness, DOGE’s active addresses have surged 47% in the past month, hinting at growing adoption.
As reported by analyst Ali Martinez, the number of active addresses jumped from 110,000 to 163,000, signaling increased participation despite market uncertainty. Moreover, a separate report by Lumen highlighted significant whale accumulation, with large holders adding an astonishing 1.7 billion DOGE worth approximately $298 million over the weekend.
This whale accumulation can be seen as a bullish factor, as it suggests that investors are betting on DOGE’s long-term potential. The recent surge in active addresses and whale accumulation raises questions about whether this newfound adoption will fuel a breakout past the psychological barrier of $0.20.
Technical analysis also supports the notion of a trend reversal. Dogecoin has printed a bullish Doji candlestick on its weekly chart, a pattern that historically precedes trend reversals. Furthermore, DOGE’s recent bounce off key support near $0.14 aligns with the lower boundary of a descending channel. A breakout above the 20-day simple moving average (SMA) could signal further upside, potentially even reaching $0.293—a significant gain of approximately 75% from current levels.
However, it is crucial to note that DOGE’s ecosystem expansion does not necessarily translate to sustained adoption and market sentiment. While new wallet addresses doubled in the past month, rising from 16,400 to 34,600, trading volume has actually decreased by a concerning 32.46% to $1.74 billion.
As such, it is essential for DOGE’s momentum to be backed by growing adoption and renewed liquidity inflows to justify a breakout above $0.20.
