What does it mean for value?

Active addresses on the Dogecoin (DOGE) network have reached a new all-time high following the meme coin's massive price increase over the past 30 days. This chapter has once again raised speculation that the DOGE could reach $1 in the short term.

While the coin has the potential to reach that value this cycle, this analysis on the chain explains why it may not be as fast as expected.

Dogecoin sees growing adoption, not slowing down elsewhere.

According to data from Santiment, Dogecoin's active addresses were less than 1 million on October 31. As of this writing, this has changed, and the benchmark has reached a new high of 9.52 million.

Active addresses are widely used to estimate the number of users connecting to a network. Serving as a key indicator of blockchain adoption and interaction with cryptocurrencies, it provides valuable insights into the network's overall activity and user engagement.

As the reading increases, it means more users are interacting with the crypto. On the other hand, a decrease indicates less drag. However, unlike in November, when this measure rose to a record high, and the signal is strong, this significant increase may not lead to a higher price for DOGE.

One reason for this proof is Dogecoin volume. On December 5, the coin's volume exceeded $15 billion, indicating that there was a lot of buying and selling.

Normally, when the volume increases with the price, it indicates more strength for the increase. As a result, the price of DOGE rose to $0.48. However, as of this writing, the amount has dropped to $6.60 billion, indicating a decline in widespread demand for MemCoin.

If this trend continues, the price of Dogecoin may find it challenging to quickly rise to the $1 mark. Instead, it could face a discount of less than $0.45.

DOGE price forecast: time to cool down

From a technical perspective, the 4-hour DOGE/USD chart shows that the coin's price has fallen below the 20-period Exponential Moving Average (EMA).

EMA detects the cryptocurrency trend by analyzing its price changes. When the price rises but is below the EMA, the trend is bearish. Conversely, if the price falls below the indicators, the price is low, and the downward trend can accelerate.

According to the image below, the price of Dogecoin, at $0.45, is below the 20 EMA (blue). Considering this situation, the price of the coin can be low, it can be reduced to $ 0.42 by the Fibonacci retracement indicator.

However, if the DOGE rises above the EMA, the trend may reverse. In that case, the price may exceed $0.48 and be closer to $1.