Dogecoin active addresses near 50K as DOGE faces $0.082 resistance test

Dogecoin active addresses neared 50,000 on July 5, pushing the token toward a resistance test at $0.082 as Binance traders maintained bullish positioning.

"Dogecoin's network activity has climbed alongside price momentum, with active addresses approaching levels that historically preceded breakouts," Jason Wu, on-chain analyst at Edgen, said.

DOGE traded at $0.0752 as of 14:30 UTC, up 3.2% in the past 24 hours, according to CoinGecko. Open interest across DOGE futures rose more than 7% in a single day, while funding rates turned positive — a sign that traders are willing to pay a premium for long positions. The Relative Strength Index on the 5-hour chart stood at 60.75, indicating buying pressure remains healthy without entering overbought territory.

A close above $0.082 would expose the next resistance near $0.09, a level that served as support for nearly two years before DOGE broke below it. Failure to clear that hurdle could keep the token range-bound between $0.070 and $0.082, with the $0.072 support level acting as the key floor.

The TD Sequential indicator recently flashed a buy signal on the daily chart, according to crypto analyst Ali Charts, who said the pattern could precede a larger move. The signal appeared as DOGE recorded three consecutive green daily candles and reclaimed the $0.076 level as support.

Longer-term indicators remain more cautious. The weekly RSI sits at 34.57, still in weak territory, while the weekly MACD continues to flash a sell signal at negative 0.019. The divergence between short-term bullish momentum and longer-term bearish structure means DOGE needs sustained buying pressure to confirm a trend reversal.

Dogecoin's supply dynamics add another layer of pressure. The token has no maximum supply, with roughly 5.2 billion new coins entering circulation each year — equivalent to about 14 million DOGE per day that buyers must absorb to maintain current prices. That inflation rate, combined with a 55% price decline over the past year, has kept the token 90% below its May 2021 all-time high.

Historical July performance also presents a headwind. Over the past 12 years, Dogecoin has delivered a median July return of negative 4.6%, with only five of those periods finishing in positive territory.

This article is for informational purposes only and does not constitute investment advice.