Dogecoin has seen strong price action as crypto markets recover and key network metrics indicate rising trader interest.
Dogecoin (DOGE) has gained momentum, supported by bullish trends in the broader crypto market and growth in several network indicators. On Thursday, May 22, Dogecoin traded at 0.2410 dollars, up 6 percent over the past 24 hours.
The rally coincided with a spike in social media interest for Dogecoin, as traders once again express bullish sentiment. Among them is crypto trader and analyst Ali Martinez, who noted that Dogecoin may be on the verge of a potential breakout to 0.31 dollars.
https://twitter.com/ali_charts/status/1925349892714615046
Additionally, Dogecoin’s price has formed a head and shoulders pattern, a classic technical formation that often signals an upcoming breakout. The pattern, which developed over several weeks, pushed Dogecoin as high as 0.25 dollars. The asset now appears to be retesting support, with a potential upside target of 0.30 dollars.
Why is Dogecoin up on 6%?
Dogecoin’s rise partially reflects momentum across the crypto market. On the same day, Bitcoin broke to a new all-time high of 111,861 dollars. Most of the top 100 crypto assets were trading in the green, with several posting double-digit gains.
Beyond market-wide trends, Dogecoin is also benefiting from strong technicals and improving on-chain metrics. Notably, whales continue to accumulate the asset. Addresses holding between 1 and 10 million Dogecoin have added about 800 million tokens since the start of May.
Network activity has also surged. Active Dogecoin addresses rose by 990 percent over the past week. This sharp uptick came as Coinbase issued a wrapped version of Dogecoin, known as cbDOGE, on the Base network. This new version enables users to stake, trade, and lend their Dogecoin tokens on Base-based decentralized finance platforms.
Traders are also speculating on the potential approval of several Dogecoin exchange-traded funds, including proposed offerings from Grayscale and Bitwise. This has contributed to a growing bullish outlook among investors.
