Dogecoin's on-chain activity has accelerated sharply, with the number of active addresses on the network jumping 36% over the past week to surpass 71,400. This surge signals renewed user participation and interest in the DOGE ecosystem, even as the broader cryptocurrency market faces uncertainty.
Despite the network growth, Dogecoin's price remains under structural pressure. The asset is currently trading around $0.1057, having declined over 16% in the past week. It continues to trade within a clearly defined descending channel, reflecting a pattern of lower highs since late 2025. Key resistance levels are seen near $0.156 and $0.20, while the $0.10 psychological level has provided recent support.
Technical analysts are pointing to a potential bullish inflection point. One prominent analyst, CryptoBull_360, identified a broadening wedge pattern on Dogecoin's hourly chart, suggesting that a sustained consolidation above current support could trigger a short-term price movement of 20% to 30%.
However, the market exhibits conflicting signals. While on-chain metrics and some chart patterns suggest optimism, derivatives data reveals potential fragility. Top traders on Binance are heavily positioned for a rebound, with long accounts near 75% and a Long/Short Ratio around 3.0. This crowded long positioning coincides with negative funding rates, indicating leverage strain and vulnerability to a sudden price drop that could force liquidations.
The convergence of rising network usage, stabilizing momentum indicators, and elevated leverage creates a critical juncture for DOGE. The asset's near-term trajectory will depend on whether organic demand from increased participation can outweigh the risks posed by the over-leveraged derivatives market.
