Dogecoin (DOGE) price may have gotten the much-needed boost to kick off a rally, as network transactions have been increasing significantly.
This uptrend in activity signals growing interest in the meme coin. But will this translate into a notable price surge?
Dogecoin Transactions Pick Up
According to data from IntoTheBlock, Dogecoin processed 1.93 million transactions last week, the highest since early July, signaling renewed interest in the coin. This could potentially lift DOGE’s price, which has dropped nearly 20% over the past 90 days.
However, transaction levels remain well below the peak seen between February and March, suggesting that a rally toward DOGE’s yearly high of $0.22 is unlikely in the near future.
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Interestingly, user engagement with Dogecoin is also rising. Santiment data reveals that active addresses reached 53,900, the highest since mid-August.
This increase in active addresses — measuring user interaction — could point to further price movement, as heightened engagement typically correlates with more transactions and potentially higher prices.
Regarding the price, crypto investor Ted Pillows says Dogecoin could lead the market into an altcoin season.
“DOGE pump always triggers an Altseason. This happened in 2020-21 and also happened in Q4 2023. Right now, DOGE is forming a similar fractal as of 2021. If the DOGE starts to pump, get ready for a face-melting Altseason,” Pillows said.
However, Crypto Kaleo opined that the coin might wait till 2025 before that massive run begins.
“I still expect it to be rather boring for the next couple of months in the range I talked about in the last post in this thread. 2025 is going to be lit, though,” Kaleo explained in a thread.
DOGE Price Prediction: The Best Is Yet to Come
On the weekly timeframe, Dogecoin appears to be following the same pattern that led to its parabolic rally in 2021. During that period, the coin traded within a descending triangle as it consolidated between $0.026 and $0.036.
However, as soon as it broke out of this channel in November of the mentioned year, the coin rallied by over 22,000% within the following six months.
Currently, Dogecoin (DOGE) is trading at $0.10, and a descending triangle pattern has formed since the price peaked at $0.22. If buying pressure intensifies, a breakout could occur. Historical trends suggest that if past performance influences future movement, DOGE’s price might increase by up to 461%, potentially reaching $0.56.
Read more: 10 Best Altcoin Exchanges In 2024
However, a drop below the $0.097 could invalidate the bullish outlook. A breakdown at this point might signal a return to a bearish trend, potentially pushing the price down to $0.057.
Disclaimer
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