Dogecoin Nears Key Levels as Holders and Active Addresses Show Growth

Dogecoin: Bullish Signals Emerge Amidst Fibonacci Support Levels

Dogecoin (DOGE) currently trades at $0.31605, approaching key Fibonacci retracement levels as it consolidates within an ongoing correction phase. Analysts anticipate that these levels may provide strong support, potentially signaling the start of a bullish reversal if buying pressure increases.

Fibonacci Support Zones in Focus

The first significant Fibonacci retracement zone lies at $0.28082, representing the 0.618 level, which historically offers initial support during corrections. A deeper support level is identified at $0.22213, aligning with the 0.786 Fibonacci retracement zone. Both levels are crucial for traders monitoring potential price rebounds.

Analysts observe that these Fibonacci zones align with broader technical patterns, enhancing the likelihood of a price reversal. However, failure to hold support at these levels could result in further downward movement. Traders are closely observing these zones as DOGE approaches them.

Potential Breakout Targets Identified

If Dogecoin respects these Fibonacci retracement zones and initiates an upward reversal, analysts have identified three potential targets:

1. $0.49784: Nearest resistance level based on historical price action.
2. $0.58185: Critical mid-range milestone for traders seeking longer-term profits.
3. $0.66228: Significant resistance zone representing a key benchmark for bullish momentum.

These targets, derived from Fibonacci extensions and historical trading data, provide clear milestones for traders in the event of a bullish breakout. Conversely, a failure to maintain momentum at Fibonacci support levels could hinder upward movement.

On-Chain Data Highlights Correlation Between Holders and Price Activity

Dogecoin's on-chain metrics from Santiment reveal intriguing trends in daily active addresses, total holders, and price movements from 2023 to 2024. As of December 24, 2024, daily active accounts stood at 34,800, marking a slight decline from activity peaks seen in late October. During the October surge, daily active addresses exceeded 50,000, coinciding with a price spike to approximately $0.47.

This correlation between active addresses and price surges underscores the heightened speculative interest in Dogecoin during bullish market cycles. Notably, the price retraced to $0.321, closely mirroring the reduction in active addresses.

Furthermore, Dogecoin's total holder count exhibited steady growth throughout 2023, reaching 6.9 million by December 2024. Accumulation occurred from October 2023 to February 2024, where the total holder count rose from 5.5 million to over 6.3 million. This period coincided with sustained price increases, highlighting strong investor confidence during upward momentum.

Despite price corrections in Q4 2024, the number of holders remains near all-time highs, indicating long-term investor confidence. These on-chain metrics offer valuable insights into Dogecoin's market behavior, where active addresses and accumulation patterns directly influence price dynamics.