Dogecoin might be preparing for a significant bullish phase as indicated by the charts showing potential MACD crossover.

Dogecoin Might Be Building Momentum

According to an analysis by on-chain analyst Ali Martinez, a bullish MACD crossover is likely to form soon. Previously, when this signal appeared, Dogecoin's price surged by 90% and 180% respectively. Martinez states: "Twice when Dogecoin (DOGE) experienced a MACD bullish crossover on the weekly chart, its price rose by 90% and 180% respectively." This indicates that when such technical conditions occur, the probability of a sharp increase in Dogecoin's price is high. MACD is a technical indicator used to measure market momentum, and when a crossover occurs, it signifies that bullish momentum is developing.

Increase in Transaction Activity

Dogecoin is also experiencing significant growth in network activity. In the past week alone, the number of new addresses has increased by 72%. This significant growth signals increasing interest in DOGE among both retail and institutional investors. Active addresses on the Dogecoin network also saw a sharp increase, with a 37.23% rise over the past seven days, indicating more users are engaging in transactions either for investment or daily operations. Additionally, the volume of large transactions of over $100,000 has increased by 52.1%, showing that major investors are beginning to take more notice of Dogecoin.

Is Dogecoin Ready to Soar Again?

The increase in trading volume over the past week indicates that the Dogecoin market remains dynamic. An increase in trading volume often serves as an indicator that the price may move significantly soon. Given the MACD signal and the rise in large transactions, there is a strong indication that Dogecoin's price could soon see another significant surge. If this scenario materializes, the price could increase by 90-180%, similar to previous surges. Despite positive technical signals, investors should continue to analyze the market and consider all possible factors before making investment decisions.

Dogecoin might be on the brink of significant growth, as shown by MACD signals and increased network activity. However, investors should continue to analyze the market and consider all possible factors before making investment decisions.