Dogecoin (DOGE) price could start an upward rally as it gains the necessary momentum following a significant increase in network transactions.
This upward trend in activity indicates growing interest in DOGE, but will this lead to a noticeable price increase?
Dogecoin Trading Increases… Highest Level Since Early July
According to data from cryptocurrency on-chain data platform IntoTheBlock, Dogecoin processed 1.93 million transactions last week, its highest since early July. This suggests that interest in the coin is growing again. This could boost DOGE’s price. Over the past 90 days, the price has fallen by almost 20%.
However, trading levels are still well below the highs seen between February and March, suggesting that a rally to DOGE’s yearly high of $0.22 is unlikely in the near future.
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Interestingly , user engagement for Dogecoin is also on the rise . According to data from cryptocurrency online data platform Santiment, there are now 53,900 active addresses, the highest level since mid-August.
An increase in active addresses measures user interaction, which may indicate further price movement. Higher engagement is generally associated with more transactions and potentially higher prices.
As for price, crypto investor Ted Pillows said Dogecoin could lead the altcoin season .
“DOGE pumps always trigger altseasons. This was the case in 2020-21 and Q4 2023. Right now, DOGE is forming a fractal similar to what it did in 2021. When DOGE starts pumping, get ready for an incredible altseason,” Pillows said .
However, Crypto Kaleo opined that the coin could wait until 2025 for a major uptrend.
“I still expect the next few months to be somewhat boring, in the range I mentioned in my last post. But 2025 is going to be spectacular,” Kaleo explained in the thread .
DOGE Price Prediction: Wait for Upward Breakout of Descending Triangle Pattern
On the weekly timeframe, Dogecoin appears to be following the same pattern that led to its explosive rally in 2021. During that period, the coin has been correcting between $0.026 and $0.036, forming a descending triangle.
Of course, it was a bit of a special case, but after breaking out of this channel in November of that year, DOGE surged by over 22000% over the next 6 months.
Currently Dogecoin (DOGE) is trading at $0.10 and has formed a descending triangle pattern after the price reached $0.22. If buying pressure strengthens, a breakout could occur. If past performance is indicative of future movements , the price of DOGE could increase by up to 461% , potentially reaching $0.56.
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However, if it falls below $0.097, it becomes difficult to expect an uptrend. A price breakdown at this point could signal a reversion to the bearish trend, which could push the DOGE price down to $0.057.
