- Dogecoin’s social activity has increased, fueled by Elon Musk.
- DOGE has been facing low volatility, but the price could soon be pushed out of its narrow range.
Dogecoin (DOGE) has been trending sideways since the second week of August, but there is hope for a big directional move.
The memecoin has seen an increase in social activity over the past two days, suggesting it is receiving more attention.
Dogecoin has been one of the top trends on X (formerly Twitter) over the past 24 hours. This is largely thanks to Elon Musk, who reignited the buzz with a recent tweet.
Musk’s tweet was in response to a supporter’s suggestion that Trump should create a new institution called the Department of Government Efficiency (DOGE).
The SpaceX CEO’s association with Dogecoin has almost always had an impact on the memecoin’s price action. The same goes for the sentiment around DOGE.
Unsurprisingly, social searches for Dogecoin saw a slight increase this week, but not significantly.
Source: IntoTheBlock
The hype surrounding Elon Musk’s tweet is timely, given Dogecoin’s price level at the time of publication. The memecoin is moving in a wedge pattern, supported by descending resistance and ascending support lines.
Can DOGE Find New Momentum?
The key point to note is that the recent sideways price trend in DOGE occurred just as the price was entering a compression zone.
In short, a resurgence in volatility could lead to a major move, possibly resulting in a breakout or breakdown of the wedge pattern.
Source: TradingView
Although Dogecoin saw some upside in the first half of this week, the weak bullish momentum failed to break out of the range. This was evident by the RSI’s inability to break above the 50% level.
A break above the same level would likely confirm the resurgence of strong bullish momentum, also possibly pushing above current near-term resistance, with a breakout target above $0.11.
Dogecoin’s $0.10 price at press time represented a 53% discount to its YTD high in March, so the lower price could encourage accumulation.
Dogecoin’s balance by holding time indicates that significant levels of accumulation have occurred. For example, there were less than 4 million HODLers at its peak in March.
There were now over 4.3 million HODLers with DOGE in their wallets, according to the latest data.
Source: IntoTheBlock
Cruise ship or swing traders peaked at 2.3 million addresses in early April, but the latest data indicates the presence of 2 million addresses.
This is likely due to the continued decline, which has been more conducive to dip buyers.
Read Dogecoin (DOGE) Price Prediction 2024-2025
Dogecoin traders peaked at over 791 million addresses in February and are currently down to 112,820 addresses at press time.
This once again confirmed the growing emphasis on HODL culture, which could favor DOGE bulls in the long term.
