Dogecoin’s Resilience: Key Factors Impacting Price and Future Prospects

Dogecoin (DOGE) continues to showcase remarkable resilience by defending the critical support level of $0.20, even amidst market fluctuations triggered by the SEC’s acknowledgment of 21Shares’ filing for a DOGE ETF. This development has reinvigorated hopes for a price recovery, which is essential given that the broader crypto market has experienced a pullback. Notably, daily active addresses on the Dogecoin network have soared to a multi-month high, reflecting renewed interest. As the price trades at around $0.22, down 5% over the last 24 hours, what does this hold for the future of Dogecoin?

Surge in Daily Active Addresses Signals Growing Interest

On Thursday, DOGE prices witnessed a dip to $0.22 after reaching an intraday high of $0.238. This drop correlated with Bitcoin’s decline to around $101,000, creating fears of a possible downturn below $100K, which could signal the end of the recent bull run. However, despite these challenges, Dogecoin traders have demonstrated remarkable tenacity, buoyed by an impressive surge in daily active addresses. The active addresses witnessed an astonishing increase of over 800% in just two days, skyrocketing from 74,000 to 674,000—the highest number recorded since November 2024.

This monumental jump indicates a significant rise in Dogecoin’s network usage and underscores speculative behavior among traders. The spike in active addresses suggests that many traders are accumulating during this dip, which signals a growing confidence that a breakout in Dogecoin’s price could be on the horizon. Coupled with high open interest in DOGE trading, this reflects sustained trader interest and a bullish sentiment in the market.

ETF Buzz Fuels Dogecoin’s Momentum

The recent acknowledgment from the SEC regarding 21Shares’ filing for a spot DOGE ETF has driven substantial bullish momentum for Dogecoin. This pivotal development places the potential approval closer to reality, with the Dogecoin community eyeing an October deadline for further updates. Following this announcement, market analysts noted that the likelihood of a spot DOGE ETF gaining approval has surged to 68%, the highest figure reported in two weeks. Additionally, Polymarket data shows around 24% of traders foresee approval by July 2025.

Supporting this bullish sentiment is the backdrop of the pro-crypto stance taken during President Trump’s administration, along with the recent confirmation of Paul Atkins as SEC Chair. Bloomberg highlights that Dogecoin now ranks fourth in terms of the probability of gaining ETF approval, trailing behind Litecoin, Solana, and XRP. This information is pivotal for traders and investors as they evaluate the potential upside of Dogecoin amidst a landscape that increasingly favors crypto assets.

Coinbase’s Upcoming cbDOGE Launch Sparks Excitement

Adding to the enthusiasm surrounding Dogecoin is Coinbase’s announcement of upcoming cbDOGE wrapped tokens on its layer two network, which is generating significant market interest. Although these products have yet to go live, expectations are high that they will catalyze a bull run for Dogecoin. Upon launch, cbDOGE will facilitate decentralized finance (DeFi) activities on Base, recognized as the sixth-largest DeFi network with a total value locked of approximately $4.74 billion, according to DeFiLlama data.

The anticipation surrounding cbDOGE and associated products is expected to further amplify trader interest and attract new investments into the Dogecoin ecosystem. As retail and institutional interest stabilize, the prospects for Dogecoin’s price could become increasingly favorable.

Technical Analysis and Price Predictions

From a technical standpoint, Dogecoin is currently seeking to maintain its bullish trend by attempting a decisive weekly close above the neckline resistance of a rounding bottom pattern. Should this breakout confirm, it could trigger an impressive rally of up to 84%, potentially settling at $0.44 in the forthcoming weeks.

This bullish price prediction is further supported by positive movements in the Moving Average Convergence Divergence (MACD), which hints at a crossover that may act as a buy signal. Historical data indicates that during the last occurrence of such a signal, Dogecoin’s price surged over fivefold. Nevertheless, for this upward trend to sustain, the Relative Strength Index (RSI) must track upward, consistently forming higher highs above the 50 mark. Currently, the RSI remains near the zero line, indicating a cautious stance among buyers.

Conclusion: A Bullish Outlook for Dogecoin

Given the recent surge in daily active addresses—a direct reflection of high demand and rising network usage—Dogecoin appears to be poised for a significant rally. The hype surrounding a potential spot DOGE ETF approval has further catalyzed this interest, providing a robust backdrop for an impending price increase. Should the accumulation of DOGE continue alongside increasing buying pressure, it’s plausible that the price could reach as high as $0.40, corroborated by technical analysis of the current rounding bottom pattern.

In conclusion, Dogecoin passionately exemplifies resilience despite market challenges. Economic indicators, trader sentiment, and external factors such as regulatory developments all contribute to an optimistic outlook for the meme coin. As crypto enthusiasts await further announcements regarding ETF approvals and new product launches, the Dogecoin community can remain hopeful for an upward trajectory in the near future.