Dogecoin‘s Network Activity Surges
Dogecoin (DOGE) has been making headlines recently, not just for its meme-driven origins but for a surge in network activity that has caught the attention of analysts and investors. In the week ending May 13th, Dogecoin saw a staggering 528% increase in active addresses, jumping from 74,640 to 469,477. This dramatic rise indicates a significant uptick in both user engagement and speculative interest in the cryptocurrency.
A Catalyst: The Spot ETF Filing
This surge in activity followed an update to 21Shares’ filing for a spot Dogecoin ETF, which received acknowledgement from the US Securities and Exchange Commission (SEC). The filing, aiming to track DOGE’s price, aligns with similar efforts by Bitwise and Grayscale, indicating potential mainstream adoption and institutional interest in the memecoin. This news likely fueled market optimism and drove the increase in network activity.
Speculative Interest Heating Up
Further evidence of this growing speculative interest is seen in the recent rise of Dogecoin futures open interest. Glassnode reported a 70% increase over the past week, climbing from $989 million to $1.65 billion, despite a price pullback from recent highs. This divergence between open interest and price suggests strong speculative positioning, a trend that Glassnode notes is “worth monitoring” for potential volatility.
Spot Buyers Dominate
The surge in network activity isn’t just driven by futures markets. Cointelegraph reported that DOGE’s spot taker 90-day cumulative volume delta (CVD) is currently “taker buyer dominant,” highlighting more aggressive buying than selling since early March. This pattern preceded a 385% rally to $0.48 in Q4 2024, suggesting a potential correlation with future price movements.
Long-Term Holders Show Confidence
Adding to the bullish sentiment, the long-term holder net unrealized profit/loss (NUPL) for DOGE holders (holding at least 155 days) recently surpassed 0.5, indicating an optimistic “belief” sentiment among these seasoned investors.
Potential Price Implications
With network activity booming, speculative interest rising, and spot buyers dominating, the market dynamics are pointing towards a potential price run for DOGE. Crypto analyst Trader Tardigrade notes that DOGE has hit a key resistance level around $0.24, with a brief consolidation expected over the next few days. A breakout above this resistance could propel DOGE to $0.40, signaling healthy upward momentum.
Dogecoin proponent Kriss Pax highlights an inverse head-and-shoulders pattern on the 1-day chart, suggesting a potential surge to $0.42. This pattern reflects a bullish breakout and could indicate significant upside potential.
Cautious Optimism
While these indicators suggest a potential price rally, it’s crucial to remember that the cryptocurrency market is highly volatile. It’s essential to conduct thorough research and consider all factors before making any investment decisions. This article is intended for informational purposes only and does not constitute investment advice.
