Dogecoin Active Addresses Surge 528% Amid ETF Filing Optimism

On May 13, Dogecoin (DOGE) experienced a remarkable surge in active addresses, increasing by 528% to 469,477. This significant rise in network activity indicates a growing interest from investors and users, potentially driven by recent developments in the cryptocurrency market. The surge followed an update to 21Shares’ filing for a spot Dogecoin ETF, which was acknowledged by the US Securities and Exchange Commission (SEC). This development aligns with similar efforts by other financial services firms, suggesting a potential move towards mainstream adoption for Dogecoin.

The acknowledgment of the ETF filing by the SEC has fueled market optimism, leading to a rise in Dogecoin’s network activity. This optimism is further supported by the increase in DOGE futures open interest, which rose by 70% over the past week, reaching $1.65 billion. Despite a recent price pullback from its highs, the decoupling of open interest and price suggests persistent speculative positioning, a trend that could indicate potential volatility in the near future.

In addition to the surge in active addresses and open interest, Dogecoin has also seen strong spot-buyer demand. The memecoin’s spot taker 90-day cumulative volume delta (CVD) is currently "taker buyer dominant," reflecting more aggressive buying than selling since early March. This pattern preceded a 385% rally to $0.48 in Q4 2024, indicating a potential for further price increases. Furthermore, the long-term holder net unrealized profit/loss (NUPL) for DOGE holders has recently surpassed 0.5, suggesting an optimistic sentiment among long-term investors.

With the network’s activity booming, speculative interest rising, and spot buyers dominating, Dogecoin’s market dynamics are setting the stage for a potential price run to its range highs. Crypto analyst Trader Tardigrade noted 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. Meanwhile, Dogecoin proponent Kriss Pax highlighted an inverse head-and-shoulders pattern on the 1-day chart, suggesting a potential surge to $0.42 with the pattern reflecting a bullish breakout. The trader advised, "Stuck between $0.22 and $0.25. Opportunities for buying dips will come. Some will swing trade. But when $DOGE decides to take off, you will want to be on board."