Key Takeaways
The rectangle bottom, or consolidation, that Dogecoin saw after April has been resolved bullishly and could herald a near 20% rally for the leading memecoin. The on-chain metrics did not signal a frenzy of profit taking yet – A good sign for the bulls.
Dogecoin [DOGE] led the memecoin sector’s recovery in recent weeks. In fact, it is up by a whopping 77% in July – The largest rally among the top 3 memecoins by market capitalization. Additionally, on-chain metrics revealed that network activity has been rising over the past month.
Source: Santiment
The daily active addresses saw huge spikes in May and mid-June. These spikes marked the market’s local top and bottom. Over the past month, the daily active addresses metric was slowly rising, but did not rise to alarmingly high levels. The transaction count was the same – A rising trend in July, but no sign of capitulation, or a bursting bubble at local price tops.
The 365-day circulation has ticked higher since May. This may be a sign of rising adoption, with old holders taking profits but new market participants entering the market as well. Hence, the question – Does the price action agree with the metrics that DOGE could rally further?
Dogecoin price prediction for July and August
Source: DOGE/USDT on TradingView
The range formation (white) since March has extended from $0.142 to $0.25. The range highs were breached on Sunday, 20 July. The trading volume has been well above average over most of the past twelve days, helping DOGE break out past the key resistance at $0.25.
The breakout past the range high and the width of the range suggested that the current Dogecoin rally should reach at least $0.33. At the time of writing, Dogecoin was testing the $0.285 resistance from February.
Overhead, the next key resistances were marked in yellow. The psychological resistance at $0.4 could pose a huge obstacle to Dogecoin. Especially since it was a significant horizontal level from November 2024 to January 2025.
In the next month or two, Dogecoin’s price prediction will be strongly bullish, with a $0.357 target based on the range breakout. In the short term, a pullback to $0.25 or the fair value gap at $0.26 would offer a good buying opportunity to swing traders.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
