Dogecoin's price has fallen over 60% since its December peak. However, recent network data suggests a potential turnaround for DOGE holders.

Yesterday, Dogecoin network activity surged dramatically, with active addresses increasing by 270%, jumping from 71,750 to 264,000 in just 24 hours. Such a significant increase often precedes price movements, making this a noteworthy development.

Ascending Channel Pattern Hints at Dogecoin Rebound

DOGE is currently trading around $0.16841 following a 29.62% price drop. The $0.16 level is a crucial support zone, aligning with a previous Fibonacci retracement level (approximately 0.618) and holding historical significance.

A broader perspective reveals that DOGE has been trading within an ascending parallel channel, indicating a potentially bullish long-term trend despite recent declines. The current price is testing a mid-range level within this channel, coinciding with a historically significant support zone.

If DOGE maintains its position at $0.16 and rebounds, it could potentially reach the next Fibonacci extension levels between $1.00 and $2.00. The $2.00 target is derived from extended 1.272 and 1.414 Fibonacci projections—levels often associated with significant price targets during bull markets. Conversely, a further price drop could see support between $0.10 and $0.12.

Dogecoin's Historical Pattern Suggests Potential Upside

Trader Tardigrade has identified a recurring pattern in Dogecoin's price history since October 2022. Three significant pullbacks have occurred, each resulting in approximately a 64% drop, followed by explosive rallies of +300% and +500%.

The current pullback is around 66%, mirroring previous corrections. If this pattern continues, another significant price increase towards $1.00 is possible.

This is a critical juncture for Dogecoin. Its performance at the $0.16 support level will be crucial in determining its trajectory in the coming months. The combination of increased network activity and the price reaching a technically significant support zone presents an intriguing scenario for this popular meme cryptocurrency.

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