Dogecoin’s Bullish Potential Strengthens Despite Low Network Activity and Evolving Market Dynamics

April 29, 2025

As Dogecoin (DOGE) eyes a pivotal price milestone, bullish momentum persists despite low network activity and cautious market sentiment.

Scarcity metrics indicate strengthening fundamentals, while derivatives sentiment indicates growing trader confidence.

“Moderate profitability levels reduce immediate sell-off risks,” noted a COINOTAG analyst, underscoring the asset’s ongoing bullish setup.

Explore Dogecoin’s potential for a breakout as scarcity rises and market sentiment strengthens, despite current network activity constraints.

Technical Insights on Dogecoin’s Current Price Action

Dogecoin’s latest price movements suggest that it is attempting to establish a firm foothold above the $0.20 psychological threshold. Currently trading around $0.1813, the coin showed a mild increase of 0.33% over the past day. Despite encountering some resistance on the charts, the prevailing price structure indicates a stronger bullish sentiment than witnessed in previous months. Historical analysis suggests that prolonged closes above significant resistance levels typically herald subsequent price rallies. As Dogecoin continues its breakout efforts, optimism among investors grows, with many anticipating a substantial upward trajectory.

DOGE technical analysis

Source: X\Ali

Current State of Network Activity

Despite positive price movements, Dogecoin’s on-chain metrics indicate a relative dearth of activity. According to recent data from Santiment, daily active addresses numbered 62,588, with transaction totals around 61,411. While these numbers reflect recent improvements, they still lag significantly behind peak activity observed in late 2024. This sluggish network engagement suggests that broader retail participation may remain subdued at this time.