Dogecoin, the leading meme-based cryptocurrency, is appearing to witness a resurgence of bullish momentum. Following an extended period of price correction, Dogecoin displays behavior typical of a bullish trend reversal. These changes have been supported by strong technical indicators as well as on-chain metrics. Now, a beautiful classic cup and handle pattern has developed on the monthly chart. This new pattern could mean that the trend will persist in their favor to go up. A record surge in new addresses created and transaction activity indicates increasing user adoption and net growth.

Dogecoin's Price Volatility and Recent Recovery

Dogecoin has seen extreme price fluctuations in recent weeks. By early 2024, the crypto had soared to almost $0.23. It experienced a dramatic correction, crashing all the way down to $0.09. Dogecoin was able to weather the volatility storm, even reaching a 14-day high of 17.3% in early October.

This increase hints at a possible reversal in market sentiment, suggesting that Dogecoin could be breaking past earlier selling resistance. Dogecoin’s price had previously decreased to approximately $0.153 on its peak time, April 20. It started to bounce back and was priced around $0.162 as of April 21, representing an increase of nearly 4.3% over the past 24 hours. The cost of Dogecoin had gone up by over 5% in just two days following the report’s release.

Cup and Handle Pattern Indicates Bullish Continuation

Dogecoin exhibits great signs for a bullish trend. This is most clearly seen in the way it has formed a cup and handle pattern on its monthly chart. This well-known technical pattern is usually a bullish continuation pattern indicating an uptrend in progress will continue. The AB leg of Dogecoin’s price increase jumpstarted to a peak of about $0.41546. This extraordinary increase represents nearly a 733.06% jump from its bottom of $0.0468.

The “cup” part of the formation indicates a period where prices level out following a rise. The “handle” suggests a short-term retreat before the price prepares to break out to new records. Traders and analysts view this pattern as a very bullish signal of significant buying strength. Speculators think that the unit of Dogecoin can keep going up in value.

On-Chain Metrics Support Growth Narrative

Beyond technical analysis, Dogecoin’s on-chain metrics are another indicator that it has potential for growth. The Dogecoin network has recently experienced a historic influx of new addresses. That’s right – in a mere seven days, the amount of addresses has increased by 102.40%! That kind of increase in address activity is usually a pretty good sign for user participation, and adoption is a real thing.

Transaction metrics tend to peak at the height of market cycles. As a result, this trend implies that Dogecoin’s recent on-chain activity could produce more upside price appreciation. This recent uptick in the network’s usage is both a symptom and a cause of all the newfound interest and confidence in Dogecoin.