Dogecoin has been battered in the charts this year as it dipped nearly 46% year-to-date. It fell from a high of $0.39 early this year to a low of $0.17 on Thursday and is attracting bearish sentiments. However, DOGE is displaying bullish reversal signals that could make its price soar, according to the leading analytical firm Santiment.
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The analytical firm pointed out the increasing number of wallets owning Dogecoin as its price dipped. The number of wallets holding over 1 million DOGE has also surged by over 1%. The Dogecoin network is also brimming with activity with close to 150,000 active addresses per day. All these developments indicate investors’ confidence in the leading meme coin.
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Dogecoin Could Turn Bullish With Major Price Reversal
Santiment shared a chart showing Dogecoin’s active wallets scaling up much higher than usual, which indicates a price reversal soon. “Dogecoin, like most meme coins, has been hammered during the two-month crypto-wide retrace. However, we recommend keeping an eye on the rising level of wallets holding at least one million DOGE, which has recovered during the price dump. Active addresses are also at four-month highs.”
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The metrics firm also noted that while other blockchains faced a decline in user activity, Dogecoin defied the trend. It wrote that only DOGE, Cosmos, and Solana saw a rise in contributors while other leading ecosystems experienced a decline. “And if we switch the perspective and zoom in to just the past one month, it’s a bit discouraging to see that every ecosystem in the top 10 has taken their foot off of the gas. Development activity events have declined across the board, with only Cosmos and Solana seeing a rise in contributors.”
On the flip side, if Bitcoin falls below the $80,000 mark this month, Dogecoin has more chances of slipping south. Therefore, it is advised to trade with caution as the market is dynamic and subject to rapid changes.