Dogecoin (DOGE) Recent Surge in Network Activity and Technical Patterns Signal Potential Bullish Movement

Dogecoin (DOGE) has recently sparked interest in the cryptocurrency community due to its surge in network activity and technical patterns

Dogecoin (CRYPTO: DOGE) has recently sparked interest among cryptocurrency traders as its network activity hit levels last seen during the last major rally, while technical patterns suggest potential bullish movement in the near term.

As active addresses on the Dogecoin network approached 200,000 in a single day, and the classic inverse head-and-shoulders pattern formed on the 1-hour chart, traders may be considering setting limit orders above the crucial $0.169 resistance. A breakout above this level could trigger a price rally towards $0.185-$0.190, marking a 9% potential gain from current levels.

Here's a closer look at the current trends and what they could mean for Dogecoin's price.

Technical Pattern: Bullish Signal For DOGE

The 1-hour chart of Dogecoin on Binance showed a classic inverse head-and-shoulders pattern, often seen as a bullish indicator. This pattern formed with the left shoulder at $0.150, the head dipping to $0.1438, and the right shoulder stabilizing near $0.160. The neckline resistance sits at $0.169, where price consolidation occurred. A breakout above this level could trigger a price rally toward $0.185-$0.190. This would represent a potential 9% upside from current levels.

To put this in perspective, if the price of Dogecoin manages to sustain itself above the $0.190 level, it could set the stage for a continuation of the bullish trend, potentially pushing towards the $0.250 mark. However, a false breakout scenario could unfold, leading to a deeper decline and potentially testing the critical support zone at $0.130.

As the MACD (Moving Average Convergence Divergence) line crossed above the signal line, it indicates bullish momentum. However, if DOGE fails to break above $0.169, it could face a retracement to the $0.150 support level.

Support And Resistance Zones

In terms of key price levels to watch, the immediate resistance for DOGE is the $0.169 neckline. A breakout above this level could lead to a rally toward the $0.185-$0.190 range, marking a 9% potential gain. On the other hand, a failure to break through this resistance could result in a pullback toward the $0.150 support zone. A drop below $0.165 would signal further bearish momentum, with a potential test of the $0.1438 level.

For those interested in long-term targets, sustained movement above $0.190 could set DOGE on a path to $0.250. However, a false breakout could send the price lower to the $0.130 level.

Network Activity And Growing Adoption

An important factor to consider is that active addresses on the Dogecoin network recently neared 200,000 in a single day—levels last seen during DOGE's last major rally. This increase in activity suggests growing adoption, which is typically a prerequisite for price surges.

As the saying goes, "never trust a narrator." While the news report claims that "the rise in active addresses correlates with price jumps in previous cycles," it's crucial to remember that correlation does not equal causation.

For instance, in January 2024, when active addresses experienced a spike, it was later followed by a substantial increase in price, leading to over 50% gains.

If the trend continues and active addresses climb toward 2 million, it could potentially propel Dogecoin to reach the $0.500 level. However, if adoption slows down and active addresses decrease to below 50,000, it could limit Dogecoin's upside potential, pulling the price back toward the $0.150 zone.

Traders' Positioning And Volume Profile

Traders were actively positioning their buy orders around the $0.165-$0.167 zone, taking advantage of high liquidity in this range. The $0.169 resistance level remained a critical point for potential breakout, while the $0.1438 level marked key reversal points. If DOGE manages to break above the $0.169 resistance, the next target would be the $0.185-$0.190 range.

Conversely, if the price falls below $0.165, traders are likely to set stop-losses at $0.1438 to mitigate risk. Long-term traders will be watching for volume expansion towards the $0.200 level, which could fuel a move toward $0.250. However, declining liquidity below the $0.1