Dogecoin has seen its price decline over 20% from December peaks as the memecoin struggles to sustain upside momentum. However, on-chain data reveals a brewing resurgence in grassroots activity and adoption that could foreshadow a trend reversal.
What you'll learn 👉
New Wallets Growing at Record Pace
According to insights from Santiment, over 413,800 new Dogecoin wallets have been created in just the past two weeks. This parabolic growth rate represents the highest in DOGE’s decade-long history:
“But the #memecoin’s wallets with >0 $DOGE coins has been growing at the fastest rate in the network’s decade long history.”
Source: Santiment – Start using it today
The influx of new users and capital fuels network effects that typically propel subsequent price increases. Still, in the short term, DOGE remains stuck, bouncing between $0.073 and $0.09 resistance.
Breakout Requires Decisive Range Break
Analyst Yomi notes DOGE must clear $0.09 resistance to kickstart a substantial breakout, with targets at $0.10 and $0.11 thereafter. This aligns with the December breakdown level that has capped rallies in 2023 so far.
However, from a cycle perspective, Yomi sees similarities to historical accumulation ranges that preceded mega rallies, tweeting:
“Now is the most painful point in the cycle but within the coming months doge will begins its ascension.”
DOGE has traded within this channel over the past month, spanning roughly $0.073 to $0.09. Specifically, the $0.073 level has provided strong support, with the price repeatedly bouncing off this area in January. This suggests solid demand is helping defend the bottom of the prevailing range.
However, Dogecoin needs to breakthrough channel resistance around $0.090 to signal a meaningful bullish breakout is unfolding.
Closing outside the upper channel boundary would indicate bulls have reclaimed control from a technical perspective. It would also open up upside towards the next resistance zones at $0.10 and $0.11.
So in essence, until DOGE can close above its trading range resistance, it remains confined to largely directionless and choppy conditions. But reclaiming $0.09 would be an early signpost that a bullish conviction is building to retest higher technical barriers.
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