As Bitcoin (BTC) prices suggest a possible rebound to above $90,000 soon, the leading dog-themed meme coin Dogecoin (DOGE), which is acquired through the Proof of Work (PoW) consensus method, indicates a potential bottom. Since March 11, the price of Dogecoin has rebounded over 15%, trading at approximately $0.1721.
Dogecoin’s price shows a high correlation with Bitcoin’s price, making a rebound likely in the near future. Moreover, against the backdrop of a rising gold bull market, the cryptocurrency market is bound to benefit significantly from the declining yields in the U.S. bond market.
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From a technical analysis perspective, Dogecoin’s price has been forming a macro upward trend, characterized by higher highs and higher lows. Following a significant decline since U.S. President Donald Trump’s second inauguration, Dogecoin’s price has been retesting the lower boundary of the ascending channel over the past two weeks.
From the daily chart perspective, after falling into a parallel downward trend, Dogecoin’s price has created an ascending triangle pattern. If it can maintain a closing price above the resistance level of around $0.178, Dogecoin’s price is expected to see an increase of 15% – 20% within the next few days, thereby retesting the upper boundary of the downward logarithmic trend.
However, if the closing price remains consistently below $0.16, it may trigger more sell-offs, pushing the price down towards the next target price of approximately $0.14.
Dogecoin has developed into an exceptionally active memecoin ecosystem. Institutional investors are actively participating in the mining process, and many businesses worldwide are accepting Dogecoin as a payment method, providing strong support for its ecosystem’s development.
At the time of writing, the number of on-chain holders in the Dogecoin network has reached approximately 6.2 million. According to on-chain data analysis, there has been a significant increase in whale activity within the Dogecoin network over the past week.
In the past week alone, investors with account balances between 1 million and 10 million Dogecoins have accumulated about 110 million Dogecoins, bringing their total holdings to approximately 10.44 billion coins. Meanwhile, the number of active addresses in the Dogecoin network has doubled in the past few weeks, reaching around 280,000 at the time of this writing.
