Dogecoin active addresses surge by 528% — Will DOGE price follow?

Key Takeaways:

Dogecoin’s active addresses surged 528% to 469,477.

DOGE’s futures open interest rose 70% to $1.65 billion, indicating strong speculative interest.

On May 13, Dogecoin (DOGE) witnessed a staggering 528% increase in active addresses, soaring from 74,640 to 469,477, signaling robust network activity and growing investor interest. This surge followed an update to 21Shares’ filing for a spot Dogecoin ETF, receiving acknowledgement from the US Securities and Exchange Commission (SEC). The financial services firm confirmed the development on X on May 14.

The filing, which aims to track DOGE’s price, aligns with similar efforts by Bitwise and Grayscale, hinting at potential mainstream adoption. This news fueled market optimism, leading to a rise in the memecoin’s network activity. 

Adding to the momentum, Glassnode reported that DOGE futures open interest rose 70% over the past week, climbing from $989 million to $1.65 billion, despite a price pullback from recent highs. This decoupling of open interest and price suggests persistent speculative positioning, a trend Glassnode noted as “worth monitoring” for potential volatility.

DOGE has also seen strong spot-buyer demand, and Cointelegraph reported that DOGE’s spot taker 90-day cumulative volume delta (CVD) is currently “taker buyer dominant,” reflecting more aggressive buying than selling since early March.

This pattern preceded a 385% rally to $0.48 in Q4 2024. Additionally, the long-term holder net unrealized profit/loss (NUPL) for DOGE holders (holding at least 155 days) recently surpassed 0.5, indicating an optimistic “belief” sentiment.

With the network’s activity booming, speculative interest rising, and spot buyers dominating, Dogecoin’s market dynamics are setting the stage for a potential price run to its range highs.

Related: Price predictions 5/14: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, LINK, AVAX

Dogecoin price targets $0.40

Crypto analyst Trader Tardigrade noted that DOGE has hit a key resistance level around $0.24, with a brief consolidation expected over the next few days. A breakout above this resistance could propel DOGE to $0.40, signaling healthy upward momentum. 

Meanwhile, Dogecoin proponent Kriss Pax highlighted an inverse head-and-shoulders pattern on the 1-day chart, suggesting a potential surge to $0.42 with the pattern reflecting a bullish breakout. The trader said, 

“Stuck between $0.22 and $0.25. Opportunities for buying dips will come. Some will swing trade. But when $DOGE decides to take off, you will want to be on board.”

Related: Bitcoin bulls aim for new all-time highs by next week as capital inflows soar

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.