- Dogecoin’s steady on-chain activity signals potential breakout as BTC rebounds.
- Bullish Falling Wedge pattern suggests DOGE could surge toward $4 target.
- Increased DOGE derivatives activity signals growing market confidence and momentum.
Dogecoin (DOGE) has maintained stable on-chain activity, with key metrics such as daily active addresses, transaction volume, and whale movements remaining consistent. Crypto expert Ali Martinez noted that $6 billion has entered the market over the past week, signaling renewed investor interest.
This influx of liquidity suggests that both institutional and retail investors are regaining confidence, potentially benefiting altcoins like DOGE. Historically, Dogecoin has closely followed Bitcoin’s price movements, meaning a BTC rebound could trigger a strong upward move for DOGE.
#Dogecoin $DOGE activity has been steady, with daily active addresses, transactions, and whale movements at key levels. A surge in these metrics could signal the start of a new leg up! pic.twitter.com/dBCd6FrG5b
— Ali (@ali_charts) February 12, 2025
Technical Indicators Suggest a Bullish Breakout
Market analysts are closely watching Dogecoin’s price action, which appears to be forming bullish technical patterns. Prominent trader Trader Tardigrade identified a Falling Wedge pattern on DOGE’s chart, a historically bullish structure that often leads to sharp rallies.
Additionally, DOGE has surpassed a key resistance trendline, reinforcing the possibility of a trend reversal. The Relative Strength Index (RSI) also indicates strong momentum, hinting that the meme coin may have bottomed out and is preparing for an upward surge.
Besides, Dogecoin derivatives data shows increased activity, further strengthening the case for a potential breakout. Derivatives trading volume has risen by 21.09% to $3.13 billion, while open interest declined by 6.35% to $2.34 billion. Furthermore, options volume surged by 127.97% to $354.47 million, and options open interest climbed 18.31% to $1.11 million, indicating heightened market participation.
Will Dogecoin Reach the $4 Mark?
Optimism surrounding Dogecoin’s price potential is growing as the asset holds above a critical support level. Martinez highlighted that DOGE remains within a key channel boundary, leaving the door open for a possible rally toward $4. If realized, this would mark a significant milestone for the meme coin and signal a broader altcoin market recovery.
However, for this bullish scenario to materialize, Bitcoin must stabilize and initiate its next leg up. Given DOGE’s correlation with BTC, a strong Bitcoin recovery could act as the necessary catalyst for Dogecoin and other altcoins to gain momentum. Hence, market participants will closely monitor Bitcoin’s price action in the coming weeks.
In contrast, XRP has experienced a decline, with its price dropping by 3.87% in the last 24 hours to $2.41. Its trading volume remains at $4.08 billion, and the token holds a market capitalization of $139.11 billion.
