Dogecoin once again draws attention with new analysis from the investment data analysis platform Alphractal, indicating that network indicators are strengthening, potentially paving the way for a significant price breakout. With miners pushing the hash rate to record highs and long-term pricing models indicating growth potential, this popular cryptocurrency seems to be building a solid foundation for the next potential price rally.
Dogecoin Market Index Will Create A Breakout
In a post on social media X on Thursday, Alphractal emphasized that Dogecoin's underlying blockchain strength could pave the way for a potential breakout. Despite being one of the most volatile assets in the cryptocurrency market, Dogecoin's mining network continues to demonstrate resilience, with the hashrate trending towards record highs.
Latest data shows that Dogecoin's average hash rate has steadily increased since 2020, closely reflecting the price growth of this coin, while also indicating that miners' commitment remains sustained and strengthened even during prolonged consolidation phases. This level of mining participation reflects ongoing confidence from miners and reflects the increasing robustness of the DOGE network. With the hash rate approaching historical highs, the security and reliability of transactions for this cryptocurrency remain well-supported, minimizing concerns about structural weaknesses.
The analytical focus of Alphractal is the newly developed Network Stress Index, a measure designed to assess the health of the blockchain by combining several key stress indicators. A higher stress index typically indicates chaos or instability, while lower values reflect a balanced and secure network environment. Recent indicators suggest that the Dogecoin network is currently stable, with no immediate signs of systemic stress, opening the door for potential growth.
The resilience of the Dogecoin network indicators may also play an important role as it continues to trade around what Alphractal calls the Real Market Average Price. As DOGE consolidates within this range, a solid foundation is being built for a potential breakout that could take this meme coin towards the next major price milestone.
Alpha Price And CVDD Highlight DOGE's Long-Term Growth Prospects
In addition to network resilience and hash rate, Alphractal's models, such as Alpha Price and the Days Destroyed Accumulated Value (CVDD), provide deeper insights into Dogecoin's pricing potential. The Alpha Price acts as an attractive model based on sentiment, capturing the position at which the asset should trade relative to broader psychological and technical conditions.
The historical correlation between Dogecoin's market price and the Alpha Price shows that this model often serves as a reliable compass during price rallies and corrections. Meanwhile, the CVDD model is one of the most accurate indicators for determining long-term peaks and troughs in UTXO-based blockchains like Dogecoin, Bitcoin, and Litecoin.
According to Alphractal, Dogecoin's current CVDD index indicates that the price is consolidating between the lower and upper bands, reflecting patterns seen before previous major price rallies. Analysis suggests that the CVDD peak is currently around $0.54, but this threshold could rise as inactive coins begin to be reintroduced into circulation. This move is expected to push the price of DOGE to $1, especially if increased network activity triggers a wave of new speculative demand.
