In the past 30 days, the price of Dogecoin (DOGE) has risen sharply, with the number of its active online addresses hitting a record high. This milestone has renewed speculation that Dogecoin could reach $1 in the near term.

While it is possible that the token will reach that value in this cycle, the analysis on the chain explains why it may not be as fast as expected.

Santiment On October 31, Dogecoin had less than 1 million active addresses, according to the data. By the time of writing, that has changed and the index has reached a record high of 9.52 million.

Active addresses are widely used to estimate the number of users interacting on the network. It provides valuable insights into the overall network activity and user engagement, and is a key indicator of blockchain adoption and interaction with cryptocurrencies.

When the reading increases, it means that many users interact with cryptocurrencies. On the other hand, the drop in reading indicates less attraction. However, unlike November, when the indicator climbed to all-time highs and was bullish, but this significant rise may not drive the value of DOGE.

One reason for this claim is the volume of Dogecoin trading. On December 5, canecoin transactions exceeded $15 billion, indicating large trading volumes.

Usually, when transactions increases with price, this indicates a further upward trend. As a result, the DOGE price has climbed to $0. [] 48. However, as of the time of writing, trading volume had fallen to $6.6 billion, indicating a decline in interest in the meme token.

If this continues, the value of Dogecoin may hardly rise to the $1 mark quickly. Instead, it could fall below $0. [] $45. From a technical point of view, the 4-hour DOGE / USD chart shows that the price of the token has fallen below the 20-Cycle Index moving average (EMA).

The EMA detects trends in cryptocurrencies by analyzing their price changes. The trend is bullish but below the EMA when the price rises. On the other hand, if the price falls below the index, the price is bearish and the downward trend may accelerate.

According to the chart below, the price of Dogecoin is $0. [] 45, below 20 EMA (blue). Given this, the price of the token could go lower, and the Fibonacci retracement indicator suggests it could fall to $0. [] 42.

However, if DOGE breaks through the EMA, the trend may change. In this case, the price could exceed $0. [] $48 and be close to $1.