Analysis: Dogecoin Marks 10-Year Anniversary –Will it Drive DOGE Price to $0.2? 

Insights:

• Dogecoin was officially launched on December 6, 2013, and 10 years down the line, it has maintained its status as the world’s largest meme coin by market capitalization. 
• The DOGE network has witnessed a 180,000 increase in Funded Addresses in the last 10 days, as the ecosystem braces up for the 10-year anniversary celebrations. 
• Historical buying trends suggest that the $0.16 area is the next major resistance.

Dogecoin marks its 10th anniversary, commemorating its official launch on December 6, 2013. Dogecoin (DOGE) price like most memecoins is often driven by social engagement and community narratives. On-chain analysis examines how the anniversary could impact the ongoing DOGE price rally. 

Recent Dogecoin on-chain data trends reveal that the pioneer meme coin attracted a significant increase in global adoption and capital inflows from new users in the last 10 days leading to the anniversary. Will this phenomenon drive up the Dogecoin price toward $0.2 in the days ahead?

Dogecoin Funded Wallets Crossed 5 Million Addresses as Price Hit 2023 Peak

Dogecoin price has been in an uptrend since the start of November 2023. Interestingly the bullish momentum has further accelerated within last 10 days leading to Dogecoin 10 year anniversary on Dec 6. 

Between November 26 and Dec 6, DOGE price has jumped 28% as it increased from $0.078 to finally reclaim the elusive $0.106 territory for the first time in 2023.  

According to on-chain data pulled from IntoTheBlock, the recent DOGE price rally appears to have been driven majorly by new users FOMO-ing in ahead of the Dogecoin 10 year anniversary commemoration. 

Indicatively, the chart below illustrates how the total number Dogecoin Funded Wallets crossed the 5 million wallet milestone for the first time ever on November 26. But more importantly, the figure recorded an unusual uptick as the Dogecoin anniversary drew closer. 

For context, Dogecoin Funded Wallets only grew by 50,000 between November 1 and November 25, increasing from 4.9 million to 4.95 million addresses. 

But as the 10-year anniversary edged closer, that figure increased by a staggering 190,000 wallets in the 10 days between Nov 26 and December 5. At press time on Dec 6, the total DOGE Funded Wallets now stands at 5.14 million.  

The Funded Addresses metric, also called, Non-Zero Balance Addresses distinguishes crypto wallets that currently hold some units of DOGE, from empty or inactive addresses. Typically an increase in Funded Addresses is interpreted as a bullish signal, indicating growing adoption and inflow of new capital. 

Notably, this unusual 190,000 wallets increase in Dogecoin Funded Addresses in the last 10 days suggest that a significant number for new investors have entered the Dogecoin ecosystem in hopes of front-running potential gains from the 10-year anniversary pomp.

Intuitively this partly explains how DOGE price has increased by nearly 30% in the last two weeks, outpacing other mega cap memecoins including Shiba Inu (SHIB) and PEPE. 

Dogecoin Price Forecast: Is $0.2 a Viable Target?

Evidently, this increase in on-chain investor participation ahead of the anniversary celebrations has evidently played a pivotal role in the on-going Dogecoin price rally. If the funded addresses continues to rise, it puts DOGE price in a vantage position for another leg up toward the $0.2 territory. 

However, for the bulls to hit the $0.2 target, they must first breakdown the significant psychological resistance level at $0.15.

The In/Out of the Money Around Price (IOMAP) data, which groups the current DOGE holders according to their entry prices, also affirms this bullish alignment.

It shows that 392,530 current holders had bought 6.92 billion DOGE at an average price of $0.16. But considering that these investors have held at a loss for more than a year, they could now be tempted to book profits once Dogecoin price approaches their break-even point around $0.16 again. 

But if DOGE price anniversary celebrations intensifies the bullish momentum, the bulls could scale that resistance and push for the $0.2 target as predicted.

On the flip side, the bears could invalidate that positive prediction if DOGE price dips below $0.07. But, in that case, the 620,000 holders that bought 41.5 billion DOGE at the average price of $0.077 could offer significant support. 

Since the Dogecoin rally appears to have been driven by fundamental increase in network adoption ahead of the anniversary,  DOGE price will likely defend that support level fiercely.