Dogecoin’s bullish setup: Top reasons why a DOGE rally could be in the works

• The double bottom chart pattern positions $0.47 as a critical breakout level.
• Network activity surges with a 102.4% increase in new addresses and steady transactions.

Dogecoin [DOGE] is making headlines as it forms a compelling double bottom chart pattern, often a precursor to bullish momentum. At press time, Dogecoin was trading at $0.4043, reflecting a 2.68% decline in the last 24 hours. 

However, its recent surge in network activity and a strong technical setup suggest growing interest among traders and investors, raising the question of whether a breakout is imminent.

DOGE chart outlook: Can $0.47 be breached?

The double bottom pattern highlights a solid support level at $0.37, while the neckline resistance at $0.47 represents a key hurdle for Dogecoin to overcome. 

Therefore, breaking above this resistance could confirm the bullish setup and potentially lead to a rally toward $0.50 or higher. With traders closely monitoring this level, Dogecoin’s short-term momentum hinges on its ability to break out decisively.

New addresses and active wallets surge significantly

Additionally, Dogecoin’s on-chain metrics reveal a dramatic rise in network activity. Over the past week, new addresses have increased by 102.4%, while active addresses have surged by 111.32%. 

These spikes suggest a wave of new participants entering the Dogecoin ecosystem and heightened engagement from existing users. 

Furthermore, zero-balance addresses, an indicator of new wallet creations, have grown by an impressive 155.33%, further solidifying the narrative of increased adoption.

DOGE transaction volume remains robust

Dogecoin’s transaction volume has also seen consistent growth. Over the past seven days, the network has maintained an average of 715.85k transactions, with a peak of 856.75k during this period. 

This sustained activity underscores the token’s utility and demand, adding another layer of support to the growing bullish sentiment around Dogecoin.

Liquidation data highlights optimism

Moreover, market sentiment appears to favor a bullish outlook. In the last 24 hours, $1.42 million in long positions have been liquidated compared to $450k in shorts.

This disparity suggests that traders remain optimistic about Dogecoin’s potential to break above the critical $0.47 resistance level.

Read Dogecoin [DOGE] Price Prediction 2024-2025

Dogecoin’s surging network activity and consistent transaction volume point to a growing ecosystem, laying the groundwork for potential price action. 

While its current price remains below the critical $0.47 resistance, the alignment of these metrics suggests that Dogecoin’s breakout potential is supported by strong fundamentals. 

If this momentum continues, Dogecoin could soon rally, reinforcing its position as a leading asset in the crypto space.