A top analyst has predicted that Dogecoin's price could rise by as much as 60% in the near term amid a 110% increase in daily active addresses.
According to crypto expert and analyst Ali Martinez, Dogecoin (DOGE) may be on the verge of a 60% breakout rally.
His prediction is that Dogecoin is at its highest level in a month after a 110% increase in daily active addresses. At press time, Dogecoin is trading at $0.17, down 0.4% in 24 hours, while 24-hour trading volume on June 20 was down 30% to $644 million.
Experts predict 60% Dogecoin price rally
According to Martinez, $DOGE coin price could record a 60% rally if it breaks out of a parallel triangle pattern. The analysis shows the formation of a tight triangle pattern that is close to a breakout point, as the stability range narrows due to reluctance by both buyers and sellers.
Martinez opined that if Dogecoin breaks out of the triangle's upper trendline, which is at $0.22, it will record a 60% gain to $0.35. Reaching this price would mark the highest level for the popular meme coin since January.
However, it is important to note that a symmetrical triangle is not always acute. Instead, the direction the price takes after the breakout depends on whether it overcomes resistance or breaches support. If $DOGE breakouts below the lower trendline support of $0.16, it could fall 60% to $0.064.
4-hour chart shows weakness of bearish momentum.
The four-hour chart shows that the bearish momentum that has seen Dogecoin's price fall 24% in the past month may be weakening.
RSI has been making higher lows for the last two days, indicating that selling pressure is easing and buying pressure is returning to the market. If it can move above 50, it would indicate that momentum is back to the bullish side.
At the same time, the AO histogram bars have turned green, and are also shrinking, a sign that the bears are losing their grip on the $DOGE price. A move above the zero line could trigger a strong rally that could match analyst Martinez’s 60% rally.
Analysis identified a falling wedge pattern formation that suggests Dogecoin price may rebound. This further supports the thesis that a trend reversal could be imminent.
Dogecoin’s Daily Active Addresses Hit 1-Month High
Dogecoin traders may be positioning themselves for a major move following a spike in the number of daily active addresses.
Per Santiment data, these addresses have increased by more than 110% in just two days, from around 66,000 to 140,000. On June 18, these addresses reached 165,740, marking the highest level in one month.
This increase usually signals an uptrend in the price of Dogecoin as user interest towards DOGE increases, and could be a bullish sign for the meme token's price movement. This spike also points to high consumer engagement and retail interest that could drive up prices.
In summary, Dogecoin price appears to be at a pivotal point as analysts point to a potential 60% move as a harmonious triangle breakout approaches. On the lower time frame, bearish momentum around DOGE is weakening while the number of daily active addresses has reached a one-month high.