- Dogecoin’s active addresses surged 400% to nearly 395,000, signaling strong market activity.
- The price could target $6 if it holds key support levels and follows historical patterns.
Dogecoin is gaining momentum, recovering from its strong support level of $0.16. It has climbed to $0.1752, gaining 4% in the last 24 hours.
This momentum has been sustained with a sharp rise in active addresses, which have risen 400% to nearly 395,000, according to Sentiment. This rise was cited as evidence of growing network activity and future investor demand by analyst Ali.
Ali also pointed out that Dogecoin reclaimed major technical levels like the 200-week simple and exponential moving averages. The Relative Strength Index (RSI) is at historic lows, indicating that the asset is likely to be oversold and due for some recovery.
The market capitalization of memecoins has risen 3.6% in the last day to $46.19 billion, further strengthening the positive outlook.
Traders historically shift their focus to riskier instruments like DOGE when Bitcoin consolidates at significant levels. Bitcoin is now consolidating around $80,000 to $85,000, which can be the stability memecoins need to rally.
[mcrypto id=”12344″]Dogecoin Holds Key Support, Eyes $2.74
Analyst Ali pointed out that Dogecoin remains in an ascending parallel channel that has previously led to explosive price surges. If the lower channel of $0.16 holds strong, the price can reach the mid-point at $2.74 or even the channel top at $6.24.
Analyst Trader Tardigrade notices Dogecoin registering several bullish signals, leading traders to question if the asset is entering the final stage of accumulation before it makes a major breakthrough.
The crypto has managed to backtest the 0.5 Fibonacci retracement, re-capture the 200-week SMA and EMA, and display historically low 3-day RSI, reflecting the presence of conditions of being oversold.
#Dogecoin repeats the pattern 🔥$Doge 🚀 pic.twitter.com/hLAorwXTO6
— Trader Tardigrade (@TATrader_Alan) March 15, 2025
The pattern is repeating itself with Dogecoin already showing signs of increased buying activity. Absorption of liquidity around the $0.15 zone drove the price up 10% to $0.17, mirroring conditions seen before its last major breakthrough.
Trading volumes have also crossed $2 billion, the last such high being in October 2023 before Dogecoin had a strong upswing. If the momentum continues, breaking through $0.20 may trigger the next leg up.
Potential for DOGE to Reach $6 Grows Stronger
Trader Tardigrade outlined Dogecoin’s historical price action, showing that strong pullbacks often set the stage for massive recoveries. Since October 2022, the asset has experienced three major pullbacks, each followed by a massive rally.
Previous drops of around 64% have been followed by rises of 300% and 500%. This latest pullback has reached 66%, indicating that another explosive move may be on the cards.
Traders are of the view that this pattern can push DOGE to the $1 mark in the near future. If the momentum continues, higher targets of $2.20 and even $6 can become within reach.
But market conditions and the price action of Bitcoin would play a crucial role in determining the speed and extent of this potential rally.