Dogecoin active addresses surge by 528% — Will DOGE price follow?

Dogecoin (DOGE) is experiencing a surge in activity, fueled by several key factors. A significant 528% increase in active addresses, jumping from 74,640 to 469,477 on May 13th, signals heightened network engagement and growing investor interest. This surge followed the SEC’s acknowledgement of 21Shares’ spot Dogecoin ETF filing, mirroring similar applications from Bitwise and Grayscale, suggesting potential mainstream adoption.

Further bolstering this positive trend, Glassnode data reveals a 70% increase in DOGE futures open interest over the past week, reaching $1.65 billion despite a recent price pullback. This divergence between open interest and price indicates persistent speculative activity, a factor Glassnode flags as potentially volatile. The sustained speculative interest is coupled with strong spot buyer demand. Cointelegraph reports that DOGE’s 90-day cumulative volume delta (CVD) shows “taker buyer dominance,” reflecting more aggressive buying than selling since early March – a pattern preceding a substantial rally in Q4 2024. Furthermore, the long-term holder net unrealized profit/loss (NUPL) for DOGE holders (holding at least 155 days) recently exceeded 0.5, signifying optimistic market sentiment.

These combined factors—increased network activity, rising speculative interest, and dominant spot buyer demand—suggest a potential price surge for DOGE. Crypto analyst Trader Tardigrade identifies a key resistance level around $0.24, predicting a potential breakout to $0.40 if this resistance is overcome. This aligns with Kriss Pax’s observation of an inverse head-and-shoulders pattern on the 1-day chart, suggesting a possible rally to $0.42. While opportunities for buying dips exist, both analysts caution that the current price consolidation may precede a significant upward move. The current market dynamics for Dogecoin strongly indicate potential for a return to its range highs. However, it’s crucial to remember that all investment decisions involve inherent risks, and thorough research is essential before making any trading choices.