Dogecoin (DOGE) experienced a remarkable surge in network activity and investor interest on May 13, with active addresses skyrocketing by 528% to 469,477. This surge in active addresses is a clear indicator of robust network activity and a growing interest from investors in the meme-inspired cryptocurrency. The surge in activity followed an update to 21Shares' filing for a spot Dogecoin ETF, which received acknowledgment from the US Securities and Exchange Commission (SEC) on May 14.

The filing by 21Shares, which aims to track the price of DOGE, aligns with similar efforts by Bitwise and Grayscale, suggesting a potential path towards mainstream adoption for Dogecoin. This news has sparked market optimism and led to a significant increase in the memecoin's network activity. Additionally, Glassnode reported that DOGE futures open interest surged 70% over the past week, reaching $1.65 billion, indicating strong speculative interest in the cryptocurrency despite a recent price pullback.

The decoupling of open interest and price in Dogecoin suggests that there is persistent speculative positioning in the market, a trend that Glassnode highlighted as something to monitor for potential volatility. Moreover, DOGE has seen strong demand from spot buyers, with the spot taker 90-day cumulative volume delta (CVD) indicating a dominance of buying activity since early March.

In addition, the long-term holder net unrealized profit/loss (NUPL) for DOGE holders who have held the cryptocurrency for at least 155 days has surpassed 0.5, indicating a bullish sentiment among long-term investors. With network activity booming, speculative interest on the rise, and spot buyers dominating the market, Dogecoin's market dynamics are setting the stage for a potential price rally to its range highs.

Crypto analyst Trader Tardigrade has noted that DOGE has reached a key resistance level at $0.24, with a brief consolidation expected before a potential breakout to $0.40, signaling healthy upward momentum. Meanwhile, Dogecoin proponent Kriss Pax has pointed out an inverse head-and-shoulders pattern on the 1-day chart, suggesting a potential surge to $0.42 with a bullish breakout on the horizon.

Overall, the combination of increasing network activity, rising speculative interest, and positive price targets indicates a bullish outlook for Dogecoin in the near term. However, it is important to note that all investments carry risks, and individuals should

Source: https://cointelegraph.com/news/dogecoin-active-addresses-surge-by-528-will-doge-price-follow?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound