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Dogecoin [DOGE] is currently navigating a crucial juncture, with the popular meme coin striving to secure a monthly close above the significant $0.20 psychological barrier. At the time of writing, DOGE was trading at $0.1813, marking a modest 0.33% increase over the past 24 hours. Despite facing some resistance on the immediate charts, the cryptocurrency’s price action reveals a stronger bullish momentum compared to previous months, fueling optimism among investors anticipating a substantial upward trajectory. Historical patterns suggest that sustained breaks above key resistance levels often pave the way for further price rallies, and Dogecoin’s persistent attempts to breach this level are reinforcing such expectations.
Subdued On-Chain Activity Raises Questions
Despite the encouraging price movements, Dogecoin’s on-chain activity presents a contrasting picture, remaining relatively muted when compared to historical peaks. Data from Santiment indicates that daily active addresses currently stand at 62,588, with transaction counts hovering around 61,411. While these figures show a slight uptick in recent days, they remain significantly below the network activity spikes observed in late 2024. This subdued network engagement suggests that broader retail participation might still be lagging behind the current price efforts, warranting cautious observation.
Scarcity and Derivatives Sentiment Paint a Bullish Picture
On a positive note, Dogecoin’s supply-side dynamics reveal an encouraging trend. The stock-to-flow (S2F) ratio has experienced a sharp increase to 64.00. This metric, which measures the relationship between circulating supply and new coin issuance, indicates growing scarcity as the value rises. Historically, an increasing S2F ratio has been associated with long-term price appreciation. Furthermore, sentiment within the derivatives market reinforces this bullish outlook.
Data from Binance shows a significant long bias, with 71.33% of DOGEUSDT perpetual accounts holding long positions compared to only 28.67% in short positions. This translates to a long/short ratio of 2.49, highlighting traders’ growing confidence in further price gains. While this dominant bullish sentiment is positive, it also suggests that any sudden shifts in market sentiment could amplify price volatility.
Overall, Dogecoin’s technical indicators, coupled with increasing scarcity and positive derivatives market sentiment, are strengthening the case for a potential bullish continuation. Although on-chain activity remains a point of observation, a decisive monthly close above the $0.20 mark could act as a significant catalyst, potentially propelling Dogecoin towards reclaiming higher price levels and eventually targeting its historical peak near $0.74.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Dogecoin (DOGE) Whale Surge Hints at Bullish Accumulation Amid Price Consolidation
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
