The post Dogecoin eyes a breakout: THIS points to $0.50 target appeared on BitcoinEthereumNews.com.

Dogecoin’s falling wedge pattern suggested a bullish breakout, but $0.39 remained a critical resistance. Weak transaction count and declining MVRV ratios cast doubt on Dogecoin’s breakout potential. Dogecoin [DOGE] was trading at $0.3542 at press time, down 3.33%, showing potential signs of a bullish breakout. Analysts point to a falling wedge pattern, a classic chart setup often signaling an imminent price surge. The breakout target is $0.39, a level that could attract renewed market interest. Will this pattern hold true and drive Dogecoin’s price higher? Is Dogecoin’s price action indicating a breakout? The falling wedge pattern on Dogecoin’s daily chart highlights bullish potential, with the critical resistance level at $0.39. If DOGE manages to break out above this point, the next upward target is $0.50, which could mark a significant move for the cryptocurrency. However, the current consolidation near $0.3542 reflected indecision in the market, leaving traders on edge. A decisive breakout above the wedge would confirm bullish momentum, but failure to do so could lead to further sideways movement or a retracement. Source: TradingView DOGE daily active addresses remain steady, but is it enough? Dogecoin’s daily active addresses stood at 101,000 on the 23rd of January, reflecting moderate user engagement. This steady activity suggested consistent community interest — essential for price stability.  However, it lacks the sharp growth typically seen during major price rallies. Therefore, while daily active addresses indicate a loyal user base, a significant increase in activity is necessary to strengthen bullish momentum. Source: Santiment Dropping transaction count raises concerns The transaction count, however, is declining, dropping to just 62,355 on the 23rd of January. This reduction indicates lower activity on the network, signaling a potential loss of momentum.  Fewer transactions may lead to reduced market confidence, potentially slowing the anticipated breakout. Reversing this trend will be…

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Filed under: News - @ January 23, 2025 1:27 pm