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.

Source: TradingView

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.

Source: IntoTheBlock

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.

Source: IntoTheBlock

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.

Source: Coinglass

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.