Dogecoin Adoption Surges—Can It Fuel a Breakout Past $0.20?

NAIROBI (CoinChapter.com)— Dogecoin’s (DOGE) network activity is rising, with active addresses jumping 47% in the past month. The increase has fueled speculation about a potential price recovery, especially as historical trends and whale activity suggest a shift in momentum.

DOGE’s price has struggled since March, dropping from $0.22 to $0.17 amid broader market weakness. However, recent accumulation by large holders and a bullish technical setup hint at a possible trend reversal.

Dogecoin Active Addresses Skyrocket Amid Market Uncertainty

On-chain data signals growing participation in the Dogecoin network. According to analyst Ali Martinez, active addresses surged from 110,000 to 163,000 in the past month. This increase suggests renewed interest despite market volatility.

A separate report by analyst Lumen highlighted whale accumulation as another bullish factor. Over the weekend, whales added 1.7 billion DOGE, valued at approximately $298 million. Lumen linked this surge to optimism surrounding a potential Dogecoin exchange-traded fund (ETF), which could inject new liquidity into the market.

“The recent whale accumulation signals confidence in DOGE’s long-term potential,” Lumen noted in an X post. “If DOGE reclaims $0.20 before any ETF announcement, we could see a push to $0.50.”

Bullish Reversal Pattern Forms on Weekly Chart

Technicals align with the on-chain data. Dogecoin has printed a bullish Doji candlestick on the weekly chart, a pattern that historically precedes trend reversals. Analyst Trader Tardigrade observed similarities between the current RSI pattern and previous cycle bottoms.

“DOGE follows the same pattern as its last bottom,” the analyst noted. “If history repeats, an upcoming bull run is ahead.”

Meanwhile, DOGE has bounced off key support near $0.14, aligning with the lower boundary of a descending channel. A breakout above the 20-day simple moving average (SMA) could signal further upside, with a potential test of $0.293—a 75% gain from current levels.

Will DOGE Adoption and Market Sentiment Sustain the Rally?

Beyond price action, DOGE’s ecosystem is expanding. On-chain analyst Ali Martinez pointed out that new wallet addresses doubled in the past month, rising from 16,400 to 34,600. This 110% increase signals growing adoption despite bearish sentiment.

However, trading volume remains a concern. DOGE’s 24-hour trading volume has declined by 32.46% to $1.74 billion, suggesting a cautious market. While the network expansion is promising, sustained adoption and renewed liquidity inflows will be crucial for a breakout past $0.20.

Historically, March has been a volatile month for Dogecoin. Cryptorank data shows DOGE has recorded an average growth of just 0.07% in the past 11 years. The asset has closed March in the red six times, with notable losses of 53.3% in 2018 and 52.9% in 2014.

Key Levels to Watch

DOGE currently faces resistance at $0.18. A breakout above this level could open the door to $0.20, aligning with historical Fibonacci retracement targets at 0.702 and 0.786. Analysts suggest that surpassing these thresholds could set the stage for a stronger rally.

While the ETF speculation and whale accumulation offer bullish arguments, sustained adoption and liquidity remain critical. If DOGE maintains network growth and breaks key resistance levels, a stronger recovery could be in play. However, traders remain cautious, as broader economic factors continue to weigh on risk assets.

As Dogecoin hovers around $0.17, all eyes are on whether adoption can fuel the next leg up—or if historical March trends will cap its upside.