Dogecoin (DOGE) Price Reversal Soon, Analysts Say, As On-Chain Metrics Signal a Trend Change

After a solid run-up last week, the world's largest meme coin Dogecoin has been facing some selling pressure with the DOGE price correcting 8%

Dogecoin (CRYPTO: DOGE) had a rough start to the week, facing selling pressure and a price correction of 8% in the last 24 hours. The meme coin is now trading at $0.1085 with a market cap that slipped under $16 billion. But market analysts believe that DOGE could be seeing a trend reversal to the upside anytime soon as per some on-chain metrics.

Dogecoin Price Reversal Soon?

Crypto market analyst Ali Martinez observed that Dogecoin (DOGE) could be at the edge of a major rally moving ahead as per the MACD indicator. The last two times of a MACD bullish crossover on the weekly chart, the meme coin surged by 90% and 180%, respectively. Thus, if the DOGE price repeats this, we can see it surge to 20 cents and 30 cents, respectively.

With technical indicators suggesting that another MACD bullish crossover may be forming, investors are keeping an eye out for a potential upward breakout in Dogecoin’s price.

Dogecoin Adoption Boosted By Libdogecoin, GigaWallet

Moreover, the recent developments within the Dogecoin ecosystem aim to improve its adoption and utility. For instance, the Dogecoin Foundation has been working on projects like LibDogecoin, GigaWallet, and RadioDoge, that seek to boost the network’s transaction capabilities and expand the meme coin’s reach to regions with limited connectivity.

Dogecoin Whale Activity, Active Addresses Surging

On-chain data provider Santiment reported that the DOGE price has retraced more than 18% from its peak last Saturday. However, despite this price pullback, the DOGE whale activity also remained high, fueling bullish momentum for the altcoin.

While whales took profits prior to the recent peak, their activity on the Dogecoin network hit a 4-month high. This suggests that whales may not be done with the asset just yet. This continued activity could signal further price action in the near future.

Additionally, Dogecoin is also seeing the largest surge in active addresses in the last 7 months, reaching 84,306 active DOGE addresses. The rise in daily active addresses indicates increasing interest in the meme coin, which could drive higher network activity.

Amid these bullish on-chain indicators, the bulls might be preparing for an “Uptober” rally, gearing up for a 2024 bull run.

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