- Dogecoin, at press time, led the charts with the highest number of short-term traders
- DOGE’s price action seemed poised for a higher move after the breakout
Short-term trader activity plays a crucial role in memecoins, especially as these tokens are driven primarily by hype and speculation. Among them, Dogecoin (DOGE) leads the way right now with the highest number of active short-term traders.
According to IntoTheBlock, DOGE tops the charts and boasted over 110k short-term traders over the last 7 days. This sets DOGE up for outperformance in the memecoin sector.
On this chart, DOGE is closely followed by Shiba Inu (SHIB) and Degen (DEGEN). However, despite SHIB’s larger market cap, Degen matched its 23k value. In fact, Degen outpaced other fellow mid-sized memecoins too.
Source: IntoTheBlock/X
DOGE looks ready to pop
Now, analyzing DOGE’s chart on the weekly timeframe, a potential rally seems imminent. Since its peak at $0.75 in 2021, DOGE has been in a long correction phase, with intermittent short-term rallies.
Recently, the DOGE/USDT pair broke above a descending trendline. This indicated that it may be ready to move higher in the near future.
This breakout could propel DOGE towards $0.4 if further bullish momentum and sentiment support the move. With key resistance levels now breached, traders are now watching for confirmation of this breakout.
Source: TradingView
Growing on-chain metrics
Dogecoin’s on-chain activity provides further evidence of its potential for a significant price hike. Consider this – The number of active addresses has hit record highs since 1 April, with a 199% uptick in weekly activity.
Additionally, the total number of addresses holding a balance has climbed to an all-time high, averaging 6.6 million over the last 30 days.
Source: IntoTheBlock
The new adoption rate that had sharply declined in March 2024 has also seen some recovery. Currently, a value of more than 26% is a signal for greater confidence in DOGE, supporting the likelihood of upward price movement.
These metrics, together, seemed to suggest that DOGE could be set for sustained gains. Especially on higher timeframes.
DOGE & BTC’s cyclical moment
Dogecoin has historically experienced its most significant price rallies during Bitcoin’s parabolic moves.
When Bitcoin broke above its all-time high resistance, Dogecoin followed suit with an even more aggressive rally. DOGE currently sits at a similar cyclical moment, where Bitcoin could be preparing for another major run.
If history repeats itself, Dogecoin may seen another surge, one supported by its strong fundamentals and trader interest.
Source: X
While market dynamics remain unpredictable, the potential for DOGE to climb higher is clear. Traders should keep an eye on key levels and monitor overall market sentiment for further confirmation of a bullish breakout.
