Dogecoin Price Forecast: Renewed Momentum Could Spark $0.56 Rally

As seen above the only 6.7 million addresses held DOGE at close of November 12. But since then that figure has been on a steady rise.

The number of Dogecoin (DOGE) holders has surged notably over the past two weeks following former U.S. President Donald Trump's confirmation of owning "a lot" of DOGE during an interview on November 12. According to data from BitInfoCharts, the total number of DOGE addresses holding a non-zero balance stood at 6.7 million on November 12. However, this figure has since risen steadily, reaching 7.07 million addresses at the last check on November 22.

This indicates that approximately 307,000 new wallets have acquired DOGE in the last 10 days. Trump's confirmation of owning DOGE appears to have significantly boosted the meme coin's perceived legitimacy and popularity, leading to a surge in new buyers.

Two key aspects make this surge in new DOGE wallets bullish.

Firstly, network growth of this nature often corresponds with higher transaction volumes and greater long-term confidence in the asset, which underpins its utility and adoption.

Secondly, such growth can serve as a contrarian indicator, especially when it occurs during periods of consolidation or downtrends.

Consolidation Periods May Precede BreakoutsDogecoin price is now trading above its Volume Weighted Average Price (VWAP) level of $0.39, indicating strong bullish momentum.

Moreover, the Bull Bear Power (BBP) indicator has shifted into positive territory, suggesting increasing buying pressure during the ongoing consolidation phase. Both indicators are highlighting the potential for a short-term bullish breakout.