Can Dogecoin break $0.1 with this record-breaking growth

The world’s biggest meme coin, Dogecoin, is currently experiencing a continuous bearish momentum. Despite this, its network is experiencing a remarkable surge, with new addresses growing by an impressive 1,100% in the past week. On January 29, a record-breaking 247,240 new Dogecoin addresses were created, reaching an all-time high. This data is shared by a prominent analyst Ali on X (previously Twitter).

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Also, one thing that you might not notice is that, before the approval of the Bitcoin ETF when every cryptocurrency was experiencing a bullish momentum, Dogecoin was undergoing a downside momentum. However, these significant record-breaking new addresses in Dogecoin indicate interest from both investors and whales in this digital asset.

The increase in network growth may have a positive impact on Dogecoin prices, a trend that we may witness in the upcoming days. The overall cryptocurrency market is once again entering a bull run, especially Dogecoin (DOGE) after this massive activity on its network. The crypto community experienced a significant price drop following the approval of the Bitcoin ETF, which is commonly referred to as profit booking.

Currently, Dogecoin is trading near $0.08, and in the last 24 hours, it experienced a slight 0.4% downside momentum. If we look at Dogecoin over a longer period, in the last 7 days, it has seen over 5% of upside momentum. Whereas in the last 30 days, Dogecoin has experienced over 10% of downside momentum. However, now we may witness a bullish move in DOGE following the creation of these 247K addresses.

Also Read: Elon Musk still supports Dogecoin

Despite this impressive data, according to expert technical analysis, Dogecoin has been moving within a parallel channel pattern (price action pattern) between the $0.05 and $0.10 levels since May 9, 2022, until now. On December 11, 2023, Dogecoin reached the upper limit of the channel pattern at $0.10, which also serves as a strong resistance. Currently, it is moving downside towards the $0.05 level, acting as a strong support.

Additionally, looking at the chart of Dogecoin on a daily time frame, it is observed that there is a strong trendline resistance that Dogecoin is currently facing. At this moment, it is on the verge of breaking this declining trendline. If Dogecoin gives a breakout in the coming days, we may experience a significant upside momentum reaching up to $0.10. Moreover, with the support of new Dogecoin addresses, there may be another breakout of the channel pattern, resulting in the span of a month or two, with the potential to see a price reaching the $0.16 level.

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