Dogecoin (DOGE), the world's largest meme coin by market capitalization, shows promising signs of a rally, according to on-chain analysis from Santiment. Improved overall crypto market sentiment and price stabilization are key factors expected to fuel this potential upswing.

Santiment highlights Dogecoin's increasing utility and a surge in "smart money" activity as indicators of a potential bullish turnaround.

Bullish Signals for DOGE

The platform points to a growing number of wallets holding at least 1 million DOGE. Since early February, this number has increased by 1.24%, adding 62 wallets. Furthermore, daily active DOGE addresses are at a four-month high, exceeding 150,000—levels not seen since mid-November 2024.

Independent market experts corroborate Santiment's findings. Recent whale activity, including a single 24-hour period where 1.4 billion DOGE were accumulated, suggests a potential supply squeeze, historically a precursor to price increases. Continued whale accumulation could significantly boost DOGE's price.

The potential approval of a Dogecoin spot exchange-traded fund (ETF) in the US could also attract substantial investment, further driving up its value.

Dogecoin's Current Price and Outlook

Despite these positive indicators, DOGE's price has suffered from the broader market correction. After reaching $0.41 on January 18th, it has fallen over 63% to $0.15 in just two months. CoinMarketCap data shows a 38% monthly decline, although a 5% increase over the past week is tempered by a current daily decrease of 2.5%. At the time of writing, DOGE is trading at $0.16, with its market cap also down 2.5% daily.

However, some analysts remain optimistic, predicting a potential rise to $1.1 within the next two months, based on price patterns reminiscent of the 2017 bull market.

The post Is Dogecoin Poised for a Breakout? These Indicators Say Yes (Santiment) appeared first on CryptoPotato.