Dogecoin has seen a significant drop, but a recent surge in network activity may signal changes ahead.
Current Dogecoin Market Situation
Dogecoin has dropped more than 60% from its December highs. However, active addresses in its network skyrocketed by 270% yesterday, rising from 71,750 to 264,000 within 24 hours, which could suggest forthcoming changes in the crypto's price.
Ascending Channel Pattern in Dogecoin
DOGE is currently at $0.16841 after a 29.62% drop. The $0.16 level represents critical support, aligning with the 0.618 Fibonacci retracement. Despite recent struggles, the long-term trend remains bullish, showing Dogecoin operating within an ascending channel.
Historical Dogecoin Patterns
Since October 2022, Dogecoin has experienced three significant pullbacks. The prior two, each around 64%, led to rallies of +300% and +500%. The current 66% pullback may predict another substantial surge.
Dogecoin's behavior around the $0.16 support could significantly affect its future path. The combination of rising network activity and technically significant support levels creates an intriguing scenario for the cryptocurrency.
