Dogecoin (DOGE) has recently seen a surge in active addresses on its network, reaching a new all-time high. This increase, coupled with a significant price boost in the last month, has reignited speculation that DOGE could hit $1 in the near future. However, while the potential for Dogecoin to reach this value exists, there are factors that suggest it may not happen as quickly as some may expect.
Data from Santiment reveals that active addresses for Dogecoin were less than 1 million at the end of October but have since skyrocketed to 9.52 million. Active addresses are an important metric for estimating user interaction and engagement with a cryptocurrency network. This rise in active addresses is a positive sign of increasing adoption and overall network activity for Dogecoin.
Despite the surge in active addresses, there are reasons to believe that this may not directly translate to a significant price increase for DOGE. The coin’s trading volume, which surpassed $15 billion on December 5, has since decreased to $6.60 billion. This decline in volume suggests that the broader interest in Dogecoin may be waning, making it challenging for the coin to quickly reach the $1 mark.
From a technical perspective, Dogecoin’s price has fallen below the 20-period Exponential Moving Average (EMA) on the 4-hour chart. The EMA is a tool used to analyze a cryptocurrency’s trend, with a price below the EMA indicating a bearish trend. With DOGE’s price currently at $0.45 and below the 20 EMA, there is a possibility that the price could drop further to $0.42 according to the Fibonacci retracement indicator.
It is important to note that the information presented in this analysis is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, and it is advisable to conduct your own research and seek professional guidance before making any investment decisions. As Dogecoin continues to navigate its price movements and network activity, monitoring key metrics such as active addresses and trading volume will be crucial in assessing its potential for future growth and reaching the coveted $1 milestone.
