A crypto analyst has predicted Dogecoin’s price action will pump very hard soon if data about the chain is any indication. The meme coin was trading around $0.10, but a range of network metrics are starting to offer a constructive outlook.
Despite the lackluster price action, some analysts say believe that a recovery can come closer than the price chart suggests. These predictions are based on several factors, but one notable factor is the increase in the number of active addresses interacting with the Dogecoin network.
Dogecoin active addresses increase by 176% in one week
Recent data from on-chain analytics platform Santiment indicates a significant increase in participation in the Dogecoin network. According to information shared by Ali Martinez, the number of active DOGE addresses increased from 41,557 to 114,662 in the past week, a jump of 176%.
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The chart data of active Dogecoin addresses shows that activity increased late last week. Previous measurements were around 40,000 to 70,000 before an activity run pushed the number of active addresses above 100,000. The last bar on the graph shows that the number exceeds 114,000 addresses, the highest level in months.
Active addresses are one of the measures of true network engagement. An increase in this metric usually indicates that more users are sending, receiving, or interacting with the item. In the case of Dogecoin, which is known for its waves of retail participation, a sudden increase in address activity could be a sign of attention returning to the meme coin.
Commentator says DOGE can pump hard
The jump in networking activity quickly sparked reaction among market observers. Crypto commentator Myles G. responded to the data by stating that Dogecoin will “pump hard soon,” linking the increase in the number of active addresses to the possibility of a stronger price increase. Such reactions are not uncommon in crypto markets. Therefore, it is not surprising that the analyst expects a hard pump for the Dogecoin price.
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Arguably the most consequential development for the possibility of Dogecoin pumping hard is what appears to be coordinated accumulation by large wallet holders. Another update shared by Ali Martinez adds another dimension to the recent activity around Dogecoin. According to the analyst, whales have purchased approximately 470 million DOGE in the last 72 hours.
The chart accompanying that post shows the amount of Dogecoin held by large holders increasing from March 12 to March 14. Technical analysis of Dogecoin price action shows that the strength is already building for the meme coin. All it takes is to hold more than $0.105 before the end of the week. If history is any precedent, the increase in whaling could be the first step in an upward repricing.
Featured image from Pixabay, chart from Tradingview.com