Dogecoin Surges 15% Amid Rising Network Activity

Dogecoin, the popular cryptocurrency, is currently trading at $0.1645 after bouncing from a low of $0.1427, indicating a potential breakout. The recent surge in active addresses and social buzz suggests a revival in network activity, which is often a precursor to increased speculative interest. This behavioral signal, combined with the current market consolidation, implies that Dogecoin is far from being dormant and could be on the verge of a notable price move.

On the 4-hour chart, Dogecoin is showing classic signs of price compression, with Bollinger Bands tightening and reduced volatility. This indicates a potential buildup for an explosive move. The coin is currently trading around $0.1645, with key resistance at $0.1716 and support at $0.1617. A close above $0.1716 could take the price to $0.1785. The RSI sits at 57.07, a neutral zone that still offers upside room before entering overbought territory. Despite the bearish lean in the order book of 61% sellers, bulls are managing to hold the current range. This consolidation follows a strong bounce from the $0.1427 support, forming a higher low structure, which is often the base for a bullish continuation. That being said, intraday traders should consider a stop loss at $0.1595.

According to the analyst's forecast, Dogecoin is in a key accumulation phase with a market cap of $24.64 billion and over $882.9 million in daily volume. The question now is whether a breakout is brewing. The recent on-chain data from Santiment paints a bullish outlook for Dogecoin, with the number of active addresses significantly increasing over the past few days. This uptick suggests the re-entry of user activity and transactional behavior on the DOGE network. More notably, social dominance has also seen fluctuating but overall upward momentum, peaking alongside address activity. This trend indicates renewed attention on DOGE in online crypto discussions and communities, which is often a precursor to increased speculative interest.