Is Dogecoin Ready to Break Out? These Indicators Show It Is

Dogecoin (DOGE), the largest meme coin in the world by market capitalization, has the potential to rise as market sentiment towards cryptocurrencies improves and the price of digital assets stabilizes, according to signals gathered by the Santiment on-chain analytics platform. Santiment indicates that the utility of Dogecoin and the smart money flow are increasing, signaling a potential turning point and price increase for this asset.

The figures indicate a price increase signal for DOGE The market analysis platform urges investors to monitor the increasing number of wallets holding at least 1 million DOGE. Since the beginning of February, these entities have increased by 1.24% and added 62 wallets (. Additionally, Dogecoin's active addresses are at their highest level in four months. With over 150,000 DOGE addresses active daily, this figure is at a level not seen since mid-November 2024. In addition to Santiment's analysis, other market experts have identified signals indicating that DOGE is gearing up for a major short-term reversal. A week ago, whales heavily accumulated the meme coin, uploading 1.4 billion tokens in 24 hours at once. According to history, the increased activity of whales has led to a shortage of supply, resulting in price increases. Therefore, if whales continue to accumulate DOGE, this meme coin may be on the verge of a significant price increase. Furthermore, the potential approval of the Dogecoin )ETF( exchange traded fund in the United States could attract more capital into the ecosystem and drive up the value of this asset. Price prospects of Dogecoin While Dogecoin's data is signaling positive, the cryptocurrency has plummeted significantly due to the overall market correction after rising to $0.41 on January 18, DOGE has dropped over 63% to $0.15 in two months. Data from CoinMarketCap shows that DOGE has decreased by 38% over the month. Although the asset has increased by 5% in the past seven days, it is still down by 2.5% daily. At the time of writing, DOGE is trading at $0.16 and its market capitalization has also decreased by 2.5% daily. Despite the sharp decline in the value of Dogecoin, some analysts predict that the asset could reach $1.1 in the next two months as it is showing a pattern similar to the one seen in the 2017 price surge.