Dogecoin (DOGE) Mimics March 2020 Network Activity Level, Breakout Possible in March or April 2025

Something intriguing has happened with Dogecoin [DOGE], and market participants should watch this. According to AMBCrypto’s analysis, the memecoin’s 24-hour

Dogecoin (DOGE) price has shown some interesting activity, and it might be crucial for market participants to pay attention. According to AMBCrypto’s analysis, the memecoin’s 24-hour active addresses had dropped down to 40,000.

Using data provided by Santiment, it was found that this was the same level of network activity that was recorded in March 2020. Nine months after this, Dogecoin began a run that took the price from $0.01 to $0.65 between January and May 2021.

Now, if we were to do the math, it would take some months for DOGE to breakout. However, we also know that in crypto, history does not necessarily repeat itself. But, pattern often rhymes.

If this historical pattern were to repeat itself, then we could see DOGE begin to move toward an parabolic rally that could begin in March or April 2025.

However, there is also a chance that the price increase might start before the aforementioned period.

As of this writing, DOGE’s price was $0.11. This was a 62.36% increase in the last 365 days. Despite the increase, Dogecoin remained 84.56% down from its All-Time High (ATH).

If a similar situation occurs, the price of the coin might break the ATH before the cycle. However, one other indicator is the coin’s 200-day EMA.

EMA stands for Exponential Moving Average, and measures trend direction over a period of time. At press time, the 200 EMA (yellow) was above the Dogecoin’s price.

If the price was above it, it would have meant that the bull run was in motion. Since it was below it, it implies that the potential surge has not begun.

However, the price was on the brink of surpassing the 20 EMA (blue). If successful, this could send the price of the coin to the upside.

Furthermore, the Chaikin Money Flow (CMF) had risen above the signal line. The CMF tracks money flow into a cryptocurrency.

When it decrease, it means buyers are weak. Therefore, the recent increase implies that buying pressure has increased. If validated, this could spur Dogecoin on a 27.56% increase that takes it to $0.13.

This prediction was also validated by the Bulls and Bears indicators. This indicator shows if the 1% trading a cryptocurrency are buying a coin or selling.

Bulls are those buying about 1% of the total volume. Bears, on the other hand, are those selling about 1% of the total crypto volume.

In the last seven days, there has been about 92 bulls and 89 bears. Should bulls continue to outpace bears, the run to $0.13 might come to pass in the short term.

In the long term, the DOGE to $1 predictions might become reality. However, market participants should be wary. If selling pressure increases, Dogecoin might retrace to $0.10.

Irrespective of the short-term market condition, DOGE’s long-term potential looks bright.

The above is the detailed content of Dogecoin (DOGE) Mimics March 2020 Network Activity Level, Breakout Possible in March or April 2025. For more information, please follow other related articles on the PHP Chinese website!