Dogecoin (DOGE) Breaks Out of Falling Wedge Pattern, Can It Hit $1.60?

Dogecoin [DOGE] has shown strong signs of breaking out of its falling wedge pattern, sparking excitement among investors.

Dogecoin [DOGE] has shown promising signs of breaking out of its falling wedge pattern, attracting attention with a 4.96% gain over the past 24 hours, trading at $0.127 at the time of writing.

As investors eagerly anticipate a potential rally toward the long-standing target of $1.60, several on-chain metrics offer insights into DOGE’s bullish momentum.

One encouraging signal is the recent surge in daily active addresses on the Dogecoin network. Over the past 24 hours, the number of active addresses rose from 50,124 to 52,211.

This increase in network activity reflects growing interest and participation from both retail and institutional investors in Dogecoin’s price movement.

Hence, the uptick in daily active addresses suggests an underlying demand that could propel DOGE’s price higher, adding confidence to the sustainability of the current rally.

Another bullish indicator is the increase in Dogecoin’s trading volume. Over the past 24 hours, volume rose to $2.07 billion, reflecting a 0.35% increase.

This higher volume indicates growing liquidity and interest in DOGE, which tends to support continued price growth.

When volume rises in tandem with price increases, it generally confirms the strength of the rally. Therefore, if volume continues to increase, it may add further fuel to Dogecoin’s bullish trajectory toward its target of $1.60.

However, some caution is warranted as Open Interest has declined by 2.63%, now sitting at $726.26 million, while volume has risen to $2.07 billion.

This disparity suggests that some traders are locking in profits or hedging against short-term volatility, which could impact DOGE’s momentum.

Adding to the bullish sentiment, recent liquidation data shows a clear bias toward the upside. Liquidations of long positions reached $728.87k, while short liquidations totaled just $189.18k.

This imbalance indicates that while some traders are taking profits, the majority remain optimistic about further price increases, suggesting that as long as Dogecoin holds key support levels, this bullish sentiment may continue to drive prices higher.