Dogecoin Address in Operation Rises 528% — Will the Price of $DOGE Follow?

On May 13, Dogecoin (DOGE) witnessed an astonishing 528% increase in active addresses, soaring from 74,640 to 469,477, signaling strong network activity and growing investor interest. This surge comes after 21Shares updated its application for a spot Dogecoin ETF, receiving confirmation from the Securities and Exchange Commission (SEC). The financial services company confirmed the development on X on May 14.

This file aims to track the price of DOGE, in line with similar efforts by Bitwise and Grayscale, indicating the potential for widespread adoption. This news has fueled market optimism, leading to an increase in network activity of the memecoin. Contributing to the growth momentum, Glassnode reports that the open interest in DOGE futures has increased by 70% over the past week, rising from $989 million to $1.65 billion, despite the price having decreased from recent highs. The divergence between open interest and price suggests a persistent speculative position, a trend that Glassnode notes is "worth monitoring" for potential volatility.

DOGE has also seen strong spot buying demand, with Cointelegraph reporting that the 90-day accumulated volume delta of DOGE spot buyers is currently "dominant," reflecting stronger buying pressure than selling since the beginning of March. This pattern has predicted a price increase of 385% to $0.48 in Q4 2024. Additionally, the net unrealized profit/loss (NUPL) of long-term DOGE holders (holding for at least 155 days) has recently surpassed 0.5, indicating an optimistic "confidence" sentiment. With the explosive activity of the network, speculative interest is rising and spot buyers are dominant, the market momentum of Dogecoin is setting the stage for the potential price increase to its highest range. The Price Target for Dogecoin is $0.4 Crypto analyst Trader Tardigrade noted that DOGE has hit key resistance around $0.24, with short consolidation expected over the next few days. A break above this resistance could push DOGE to $0.40, signaling healthy growth momentum

Meanwhile, Dogecoin supporter Kriss Pax highlighted the inverse head and shoulders pattern on the 1-day chart, indicating a potential price increase to $0.42 with the pattern reflecting a bullish breakout. The trader noted that, "Stuck between $0.22 and $0.25. The opportunity to buy when the price drops will come. Some will trade according to the trend. But when $DOGE decides to take off, you'll want to be on board."