Dogecoin shows signs of a potential sharp price increase, as indicated by technical patterns and rising user activity.
Technical Pattern Analysis
Dogecoin is nearing a symmetrical triangle breakout phase. Analysts predict a 60% rise if the price surpasses the $0.22 resistance level, which could push it to around $0.35, the highest value since January. The four-hour chart indicates weakening bearish sentiment, with the RSI and Awesome Oscillator suggesting a potential bullish shift.
User Activity Changes
The number of active Dogecoin addresses surged by 110% in just two days, reaching nearly 141,000, marking the highest level in the past month. An increase in user activity typically signals growing interest, which may lead to positive price movements.
Support and Resistance
Analyst Ali Martinez points out that a breakout above $0.22 could initiate a 60% climb, while a breakdown below the $0.16 support level may drive the price down to $0.064. Additionally, a falling wedge pattern has been observed, typically seen as a bullish reversal signal.
Based on the analysis of technical patterns and the rise in user activity, Dogecoin may be on the brink of significant price changes, which investors and traders should consider.
