DOGE, the largest meme cryptocurrency, records a 2.36% surge during Wednesday’s trading session. This uptick follows a lower-than-expected U.S. CPI and Dogecoin’s growth in wallet addresses. As the prevailing market correction takes a halt, this memecoin is poised for a bullish rebound amid the formation of a suitable chart setup.
Key Highlights:
- Dogecoin’s new wallet addresses doubled from 16,400 to 34,600, signaling growing adoption.
- A bullish reversal within the channel could drive a short recovery of 70% to challenge major resistance.
- The Dogecoin price will prolong the current correction until the channel pattern is intact.
Dogecoin Price Surged Amid Rising Wallet Addresses
According to on-chain data shared by crypto analyst Ali Martinez, the number of new addresses surged from 16,400 to an impressive 34,600.
The data highlights a sharp upward trajectory in new wallet creations, indicating renewed interest in the popular meme cryptocurrency. This increase suggests growing adoption and network activity, possibly fueled by market speculation, new utility use cases, or an influx of retail investors.
A continued surge in wallet addresses could drive demand pressure in Dogecoin price, reinforcing it’s potential for bullish reversal.
DOGE Seeks Support At Major Accumulation Point
In the last two days, the Dogecoin price has bounced from $0.14 low to $0.69 current trading value, projecting a growth of 18.5%. This uptick in the daily chart sparks a bullish reversal from the support trendline of aa falling channel pattern.
Since mid-December 2024, the chart setup has led a steady downtrend within two falling trendlines actings as dynamic resistance and support.
Historical data shows a bullish reversal within the bottom trendline has repeatedly push the asset price to the overhead trendline, typically registering a 48-60% growth. If the pattern holds, the Dogecoin price could rally 70% to challenge the overhead resistance, an outcome discussed in detail in our recent Dogecoin price prediction post.
On the contrary, the downsloping trend in daily EMAs (20, 50, 100, and 200) shows the broader trend is bearish and the anticipated rally could struggle to drive a directional rally.
If market selling pressure persists, the DOGE price could lose channel pattern and drive a prolonged downtrend.
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