DOGE price and network activity soared this week with a new catalyst in the mix. DOGE active addresses surged by 528%, from 74,640 to over 469,000, on May 13. This followed the U.S. Securities and Exchange Commission (SEC) detecting a spot Dogecoin ETF filing by 21Shares.
The May 14 revision of the filing has stimulated market interest. It also continues in the same efforts by Bitwise and Grayscale, giving the DOGE price more traction in a normally wary market.
DOGE price determined by network activity
The surge in on-chain activity is an abrupt display of sentiment. An active address indicates direct involvement through sending or receiving DOGE. When it surges, it usually reflects growing demand.
Increased investor interest is on display. Money is being moved by traders, reacting to what some view as the first step toward potential mass exposure for Dogecoin. If a spot ETF were cleared, DOGE would be included in a new class of institutionally available assets.
DOGE price gets support of traders
The action in the futures market gives some weight to the momentum. DOGE futures open interest, according to Glassnode, jumped 70% over the last week, to $989 million from $1.65 billion. The price pulled back momentarily, but the traders remain engaged.
Spot-buying is increasing as well. According to Cointelegraph, DOGE’s cumulative volume delta (CVD) has been controlled by buyers since March. Historically, this has been a precursor to spectacular rallies—like DOGE’s 385% run during Q4 2024.
Long-term holder indicators are bullish too. DOGE’s net unrealised profit/loss (NUPL) recently broke above 0.5, which means strong “belief” sentiment from holders of 155+ days.
What is next?
DOGE is being watched closely by market experts. Trader Tardigrade noted that $0.24 remains key resistance. If DOGE surpasses it, then a push towards $0.40 is viable.
Kriss Pax noted an inverse head-and-shoulders formation on the 1-day chart. A breakout of this formation can assist in pushing the DOGE price to near $0.42.
U.Today and Finance Magnates both mention $0.26 as a point of note. If DOGE is above it, a charge to $0.30 is on the cards. Some other predictions go even higher—ZebPay predicts a minimum of $1.05 by the end of the year. Mitrade and Brave New Coin draw long-term targets between $1 and $1.25.
DOGE still gains attention after the ETF creation. As network activity skyrockets and investor enthusiasm increases, momentum can propel the DOGE price upwards. Traders currently await the $0.26 level as the next indicator of what is to follow.
