Dogecoin (DOGE) Prepares for Liftoff as Key Indicators Flash Buy Signals

Dogecoin [DOGE] has been drawing attention lately due to a surge in both price and network activity. With increased active addresses and notable net inflows, analysts are closely monitoring DOGE’s potential for sustained upward momentum.

Dogecoin (CRYPTO: DOGE) has been surging both in price and on-chain activity. What Happened: A recent uptick in active address activity has fueled Dogecoin’s recent price rise.

Data from IntoTheBlock shows a strong increase in active addresses, closely tracking the coin’s price trend.

A surge in active addresses on a blockchain network usually indicates growing interest and transaction activity on the network, suggesting a broader participation base among holders and traders.

In the case of Dogecoin, this surge in address activity aligns with the price movement, creating a network effect where heightened on-chain activity builds market confidence and contributes to price stability.

This trend also showcases a robust support level as more users are actively engaging with Dogecoin, contributing to the coin’s recent rally.

The correlation between active address growth and price movement suggests that increased network usage is factoring into DOGE’s current momentum, reflecting a healthy demand for the asset.

Another key factor in Dogecoin’s positive outlook is the increased net inflows of DOGE tokens on cryptocurrency exchanges.

Over the last few months, the net inflows have risen sharply, indicating a higher volume of DOGE deposits on exchanges than withdrawals.

In most cases, net inflows suggest that traders and larger holders might be preparing to sell or engage in high-volume trades.

However, the market has absorbed Dogecoin’s recent inflows without spiking volatility, pointing to strong buying interest and market resilience.

Moreover, analysis of large-holder activity shows positive sentiment among key stakeholders.

Major inflows from large holders, including institutions and “whales,” can be a bullish indicator as their buying activity signals confidence in DOGE’s potential.

This influx of significant investments provides a price cushion, stabilising DOGE’s recent gains and reducing the risk of sharp sell-offs.

Technical indicators also signal a potential for continued upside in Dogecoin’s price action.

The Moving Average Convergence Divergence (MACD) indicator shows a recent crossover into positive territory, signaling a potential momentum shift.

The green histogram bars, aligning with increased volume and active address growth, reinforce the technical trend toward continued price gains.

Additionally, the 50-day moving average has crossed above the 200-day moving average, creating a golden cross, which is typically a long-term bullish indicator in technical analysis.

This pattern suggests a stronger upward trend extending further if address activity and net inflows remain steady.

See More: Best Cryptocurrency Scanners.

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