Dogecoin (DOGE) Active Addresses Jump 34% Amid Adoption Shift

Dogecoin (DOGE) On-Chain Activity Surges

Dogecoin's on-chain activity has seen a steady increase, with active addresses jumping 34% on the monthly chart. This surge indicates rising adoption of the memecoin, signaling signs of recovery.

While major cryptocurrencies have experienced gains, DOGE remains below key support levels. However, analysts anticipate a doubling of its current price by the end of February.

Dogecoin On-Chain Active Addresses

According to IntoTheBlock data, monthly active addresses for DOGE have increased by 34%, reaching an impressive 6.57 million. The 30-day high and low active addresses stood at 6.58 million and 6.57 million, respectively.

This substantial growth in active addresses demonstrates increased engagement within the Dogecoin ecosystem. A spike in this metric is considered a positive indicator for the price of DOGE.

Market Conditions

At the time of writing, DOGE was trading at $0.2546, representing a 0.77% increase over the previous day. Additionally, the daily trading volume surged by 28.9% to $1.41 billion.

Expectations surrounding the potential launch of a DOGE Exchange-Traded Fund (ETF) are believed to be contributing to the rise in trading volumes and active addresses. Grayscale and Bitwise Investment have submitted applications for Dogecoin ETFs, indicating growing institutional interest in the memecoin.

Investor Profitability

On-chain data reveals that 60% of total Dogecoin addresses are currently profitable. Only 5% are at the break-even point, while 25% are in a loss position. This high level of profitability suggests strong market sentiment and the potential for a rally.

However, it's important to note that with many investors already in profit, further upward movement could face selling pressure. The role of Dogecoin whales in maintaining the growth trend will be crucial.

Price Predictions

DOGE has recently faced a price decline, dropping below $0.3 for the first time since November 2024. Currently consolidating around $0.25, a breakout above this level could lead to a rise towards $0.3.

Failure to break $0.25 may cause a retest of support at $0.2. Continued bearish pressure could result in further declines.

Despite the bearish outlook, DOGE is exhibiting signs of a strong rebound. A "Golden Cross" pattern has recently occurred on the DOGE chart, indicating a potential bullish price reversal. Some analysts predict a doubling of the current price by month-end, while others believe it could surge to $2 with ETF approval.