Dogecoin Price Hints at Breakout as Network Activity Surges

Dogecoin's price has been stuck in a bearish trend, but growing network activity is signaling a potential turnaround. According to data from Ali Charts, there was a 16% increase in weekly active Dogecoin addresses to 44,000 from 38,000. This surge in activity reflects increasing interest from investors in the meme coin.

Despite the bullish signs, analysts are cautioning traders not to enter into long positions too soon. Stefan's analysis suggests that a breakthrough above $0.80 with good volume would be more positive for the rebound. The prevailing chart is making lower lows and lower highs, confirming the downward trend where sellers dominate.

The combination of growing on-chain metrics and improved market sentiment could boost the bullish view on Dogecoin. If the price manages to break out above the resistance level accompanied by growing trade volumes, the bulls' momentum might become stronger and bring in more buyers.