Dogecoin (DOGE) onchain activity steadily increases, with active addresses jumping 34% on the monthly chart.
This jump suggests rising Dogecoin adoption as the memecoin shows signs of recovery.
Although major cryptocurrencies are in the green, DOGE is still down below key support levels.
However, analysts anticipate the token will increase by twice its current price by the end of February.
Dogecoin Onchain Active Addresses Metric
According to IntoTheBlock data, monthly onchain active addresses for DOGE increased by 34%, reaching an impressive 6.57 million.
The 30-day high active addresses reached 6.58 million, while the 30-day low stood at 6.57 million.
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With monthly active addresses rising by 34%, DOGE has demonstrated impressive growth in its on-chain activity.
The active address metric demonstrates the increasing engagement within the Dogecoin ecosystem.
A spike in this metric might translate to a positive impact on Dogecoin’s price.
According to market data, DOGE price was trading at $0.2546, up 0.77% over the previous day.
However, the daily trading volume increased by 28.9% to $1.41 billion.
Expectations surrounding the launch of a DOGE Exchange-Traded Fund (ETF) are probably the leading cause of the rising trading volumes and active addresses.
In January, Grayscale filed a 19b-4 application with the U.S. Securities and Exchange Commission (SEC) to convert its recently launched Dogecoin Trust into an ETF.
This move marks a major step for institutionalizing DOGE as a legitimate asset.
Bitwise Investment has also filed for a Dogecoin ETF, reflecting growing institutional confidence in the memecoin as a financial asset.
The growing institutional interest in DOGE and President Trump’s pro-crypto administration could open the way for the memecoin’s broader acceptance in financial markets.
Profitability Trend for DOGE Holders
Meanwhile, Dogecoin investors are smiling as an impressive number of people are making money.
According to recent on-chain data, 60% of total addresses are now profitable.
Addresses at the break-even point total 180,000, or 5%, while those in loss total 885,000, or 25%.
This level of profitability suggests strong market sentiment, which may indicate a rally is imminent.
However, since most investors are already making money, additional signs of an uptrend may increase selling pressure.
Dogecoin whales have a major role to play to prevent this trend from occurring. These large investors must intensify their activities to cement a sustained growth trend in the coming weeks.
Where is Dogecoin Price Heading?
ÐOGE has faced severe heat lately, dropping below $0.3 for the first time since November 2024.
The price has fallen lower, currently consolidating around $0.25. Historical trends show a likely breakout if it surpasses the current level.
A successful hold above this level could drive the price toward the next resistance at $0.3.
On the other hand, Dogecoin’s failure to break $0.25 may lead to a retest of support at $0.2. If bearish pressure continues, DOGE could fall lower.
Despite the bearish outlook, DOGE shows signs of a strong rebound. A “Golden Cross” pattern recently appeared on the DOGE chart.
This was indicated by the 50-day moving average crossing above the 200-day moving average, suggesting a potentially bullish price reversal.
Some market analysts speculate the price could pump twice its current levels by the end of the month. Others claim DOGE may surge to $2 if it secures the long-awaited ETF approval.
