Here’s Why Dogecoin Price is Poised For Major Breakout

DOGE, the popular meme cryptocurrency, is up over 1.66% on Tuesday to trade at $0.092. The buying pressure followed a fresh relief rally broader market as Tehran shows readiness to de-escalate the ongoing US-Iran conflict. However, the Dogecoin price shows potential to resume this uptick to sustainable recovery amid a steady rise in DOGE’s active addresses, signaling the rising participants in its network.

DOGE Surges as Active Wallets Spike 28% Amid Market Relief Rally

On  March 30th, the crypto market witnessed a notable 1.71% to reach a market cap of $2.34 trillion. This renewed relief rally emerged with a hope of easing geopolitical tension in the middle east when Iranian President Masoud Pezeshkian’s statement signaled that Tehran is willing to de-escalate the ongoing US-Iran conflict but only with firm US guarantees against future attacks. 

Wall Street reacted swiftly to this news and drove major indices like the S&P 500 up 1.2%. Following the same momentum, Bitcoin bounced 2.26% to reach $68,222, while Ethereum price rose roughly 4% to regain the $2,100 mark.

The memecoin market is often the most volatile to such market developments, causing dynamic changes to its linked cryptocurrencies. By the result, Dogecoin price jumped from $0.089 to $0.0928, accounting for a 1.5% surge.

In addition, Dogecoin saw its active wallet addresses climb sharply over the past week. According to a recent tweet from market analyst Ali Mariinez, the count moved from roughly 57,000 to 73,000, registering a 28% surge. 

This surge indicates that more unique wallets are sending, receiving, or interacting with DOGE tokens, bolstering the network activity. In past cycles, such similar spikes in active addresses have preceded with notable price volatility and renewed demand pressure.

Dogecoin Price Coiling For a Major Breakout

For nearly two months, the Dogecoin price has been consolidating in a narrow space between $0.087 to $0.116 horizontal levels. The coin price showed several swings on either side of the range with breakout attempts, but failed immediately, indicating the lack of conviction from buyers or sellers to drive sustainable moves.

However, the Dogecoin price is tapering into a smaller range as a resistance trendline from the falling channel puts additional pressure on trailers. As the price reached the apex of this $0.087 support and downsloping trendline, the Dogecoin could witness a decisive breakout.

A potential breakout from the overhead trendline will push DOGE out of steady six month correction. With sustained buying, the post-breakout rally could push to $0.112, followed by a leap to $0.152.

On the contrary, if Dogecoin price breaks below the $0.087, the selling pressure would accelerate and pull the asset to $0.07 support.

The downsloping slope of 20 and 50 day exponential moving averages continue to act as dynamic resistance against DOGE.