Dogecoin's active addresses surged by 400%, reaching nearly 395,000, indicating significant market activity. Analysts suggest a potential price target of $6, contingent on maintaining key support levels and following historical patterns.

Dogecoin is experiencing renewed momentum, recovering from its strong support level of $0.16. It has climbed to $0.1752, representing a 4% increase in the last 24 hours. This surge in momentum is accompanied by a dramatic 400% rise in active addresses, nearing 395,000, according to Sentiment. Analyst Ali cites this as evidence of increasing network activity and potential future investor demand.

Source: X

Ali also notes Dogecoin's reclaiming of crucial technical levels, including the 200-week simple and exponential moving averages. The Relative Strength Index (RSI) is at historically low levels, suggesting the asset may be oversold and poised for recovery. The memecoin market capitalization has also increased by 3.6% in the last day, reaching $46.19 billion, further bolstering the positive outlook.

Source: Tradingview

Historically, traders shift towards riskier assets like DOGE when Bitcoin consolidates at significant levels. With Bitcoin currently consolidating around $80,000 to $85,000, this stability could provide the necessary environment for memecoins to rally.

Dogecoin Holds Key Support, Eyes Potential Price Targets

Analyst Ali highlights Dogecoin's position within an ascending parallel channel, historically preceding significant price increases. If the lower channel support of $0.16 holds, the price could potentially reach the midpoint at $2.74 or even the channel top at $6.24.

Source: X

Analyst Trader Tardigrade observes several bullish signals in Dogecoin, prompting speculation about a final accumulation phase before a major price breakthrough. The cryptocurrency has successfully retested the 0.5 Fibonacci retracement, recaptured the 200-week SMA and EMA, and exhibits historically low 3-day RSI, all indicative of oversold conditions.

Dogecoin repeats the pattern $Doge pic.twitter.com/hLAorwXTO6

— Trader Tardigrade (@TATrader_Alan) March 15, 2025

This pattern appears to be repeating, with Dogecoin already showing increased buying activity. Liquidity absorption around the $0.15 zone propelled the price up 10% to $0.17, mirroring conditions preceding its last major breakthrough. Trading volumes have also surpassed $2 billion, a level last seen in October 2023 before a significant Dogecoin upswing. Sustained momentum, particularly a break above $0.20, could trigger the next upward leg.

Potential for DOGE to Reach $6 Gains Strength

Trader Tardigrade's analysis of Dogecoin's historical price action reveals that strong pullbacks often precede substantial recoveries. Since October 2022, the asset has undergone three major pullbacks, each followed by a significant rally. Previous drops of approximately 64% have been followed by increases of 300% and 500%. The current pullback, reaching 66%, suggests another explosive move is possible.

Source: X

Analysts believe this pattern could drive DOGE towards $1 in the near term. Continued momentum could push prices even higher, potentially reaching $2.20 and even $6. However, overall market conditions and Bitcoin's price action will significantly influence the speed and extent of any potential rally.