Dogecoin has shown a strong breakthrough potential for Bitcoin, thanks to a surge in activity on the chain.
• DOGE is up about 480% since the first week of January.
• A more positive trend has emerged in November.
Dogecoin [DOGE] has once again attracted the attention of the market, with technical indicators and price trends indicating that Bitcoin [BTC]. Chart analysis shows that the bullish pattern could push DOGE up 2,400%. The recent on-chain data analysis showed a positive trend, further adding to this potential upward trend.
Dogecoin versus Bitcoin
The Dogecoin chart shows a clear breakthrough from the decline channel over the years. The breakout is marked by a strong upward momentum, preparing for a potential price spike in DOGE. The breakout measure is expected to target 0. [] 00009375 bitcoin, which represents a 2,400% increase from its current level.
This bullish sentiment is supported by the MACD (Moving Average convergent Divergence) indicator on the daily DOGE / USD chart. The MACD line has crossed the signal line, indicating that the upward momentum is increasing.
The histogram shows a slight consolidation of the —— which is typical in the early breakthrough stage. In addition, the 200-day moving average provides strong support at around $0. [] $26, reinforcing the possibility of continued bullish momentum.
At the time of writing, the correlation coefficient (CC) between Bitcoin (BTC / USD) and Dogecoin (DOGE / USD) was-0. 80, indicating an inverse proportional relationship. As Bitcoin Dogecoin closed close to $950,000 and seems ready to use market liquidity to move to copycoins, a common trend in the bull market cycle.
Daily active address surge
AMBCrypto Corpus Christi data shows that the daily active addresses of Dogecoin surged significantly in late November, reaching a peak of more than 1.6 million. This is a significant increase compared to weak activity levels earlier this year.
Historically, the surge in active addresses has preceded a sharp rise in prices, suggesting a return in investor interest and online activity. In addition, whale activity is increasing, and large transactions are becoming more frequent. This suggests that institutional participants or high net worth individuals are moving for potential prices. The consistency of on-chain activity and technical breakthrough signals further supports the bullish prospects for dogecoin.
Dogecoin market sentiment and price forecasts
Market sentiment: Dogecoin remains optimistic, with social indicators reflecting an increase in discussions and mentions of DOGE. This coincides with the historical trend of tokens in a hype-driven environment, amplifying its potential rebound.
Using the Fibonacci extension at its recent low, Dogecoin faces resistance at $0. 78 (2. 618 Fibonacci level) and has a long-term target of $1. 79 at the 4. 236 extension.
This prediction is consistent with the breakout target on the DOGE / BTC chart, reinforcing the likelihood of exponential growth. However, traders should be cautious about profit-taking at key psychological levels (e. g., $1).