Dogecoin (DOGE) has recently sparked interest in the cryptocurrency community due to its surge in network activity and technical patterns signaling potential bullish movement. With active addresses nearing 200,000 in a single day and a classic inverse head-and-shoulders pattern forming on the charts, DOGE’s short-term outlook looks promising. Here’s a closer look at the current trends and what they could mean for Dogecoin’s price.

Technical Pattern: Bullish Signal for DOGE

Dogecoin’s 1-hour chart on Binance has shown a classic inverse head-and-shoulders pattern, often seen as a bullish indicator. This pattern formed with the left shoulder at $0.150, the head dipping to $0.1438, and the right shoulder stabilizing near $0.160. The neckline resistance sits at $0.169, where price consolidation occurred, and a breakout above this level could trigger a price rally toward $0.185-$0.190. This would represent a potential 9% upside from current levels.

Supporting this positive outlook are technical indicators such as the MACD (Moving Average Convergence Divergence) line, which has crossed above the signal line, indicating bullish momentum. However, if DOGE fails to break above $0.169, it could face a retracement to the $0.150 support level.

Support and Resistance Zones

Looking at key price levels, the immediate resistance for DOGE is the $0.169 neckline. A breakout above this level could lead to a rally toward the $0.185-$0.190 range, marking a 9% potential gain. On the other hand, a failure to break through this resistance could result in a pullback toward the $0.150 support zone. A drop below $0.165 would signal further bearish momentum, with a potential test of the $0.1438 level.

For those looking at long-term targets, sustained movement above $0.190 could set DOGE on a path to $0.250. However, a false breakout could send the price lower to the $0.130 level.

Network Activity and Growing Adoption

An important factor contributing to DOGE’s current momentum is its surging network activity. Active addresses on the Dogecoin network recently neared 200,000 in a single day—levels not seen since DOGE’s last major rally. This increase in activity suggests growing adoption, which historically precedes price surges. The rise in active addresses correlates with price jumps in previous cycles, such as in January 2024, when similar spikes led to over 50% gains.

If the trend continues and active addresses climb toward 2 million, DOGE could potentially reach $0.500. However, if adoption slows down and active addresses fall below 50,000, it could limit Dogecoin’s upside potential, pulling the price back toward $0.150.

Traders’ Positioning and Volume Profile

Traders are actively positioning their buy orders around the $0.165-$0.167 zone, taking advantage of high liquidity in this range. The $0.169 resistance level remains a critical point for potential breakout, while the $0.1438 level marks key reversal points. If DOGE manages to break above the $0.169 resistance, the next target would be the $0.185-$0.190 range.

Conversely, if the price falls below $0.165, traders are likely to set stop-losses at $0.1438 to mitigate risk. Long-term traders will watch for volume expansion towards the $0.200 level, which could fuel a move toward $0.250. However, declining liquidity below the $0.150 support could trigger a deeper correction, pushing DOGE toward $0.130.

Conclusion: Bullish Momentum or Retracement?

Dogecoin’s short-term outlook appears bullish based on its inverse head-and-shoulders pattern and increasing network activity. A breakout above $0.169 could propel DOGE toward $0.250, supported by strong buying pressure and growing adoption. However, failure to clear this resistance could lead to a pullback to $0.150, and a break below $0.165 may signal bearish momentum.

Traders will need to monitor network activity and liquidity closely, as these factors could determine whether DOGE continues its bullish trajectory or faces a correction in the near term.