Dogecoin DOGE/USD whale transactions and daily active addresses continue to rise despite the current dip in price.
As a result, analysts remain optimistic about the meme coin’s future.
What Happened: Crypto trader and analyst Rekt Capital recently tweeted that Dogecoin broke its macro downtrend two weeks ago, potentially signaling a shift in market sentiment.
The analyst suggests that the meme coin is consolidating before potentially continuing its upward trajectory.
Another crypto trader, Stockmoney Lizards, hinted at strong times ahead for Dogecoin, highlighting the token’s real-world adoption.
This comes amid Elon Musk’s recent announcement that Tesla will soon accept DOGE as payment.
Charts analyst Cryptollica also tweeted that, based on Dogecoin’s cycle chart, the meme coin is likely to approach its all-time high levels.
Why It Matters: IntoTheBlock data shows a 92.8% surge in large transaction volumes, while daily active addresses have spiked by 13.5% to 199,190. Notably, despite a 19% drop in the past seven days, 80.6% of Dogecoin holders are still in profit.
Although Dogecoin’s price has fallen by 19% over the past week, it is still trading 67% higher on a monthly basis.
What's Next: As the Dogecoin community celebrates Musk’s recent comments about using DOGE to purchase Teslas, trader YG Crypto is curious whether the Dogefather can lift the meme coin’s price as it declines towards the 0.112 – 0.120 support zone.
The trader highlights a “potential downward trend” for Dogecoin, as the price dropped “below its key support level and then revisited again.”
Amid a mix of positive and negative developments, it will be interesting to see what the future holds for the Dogecoin community.
Image: Shutterstock
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