Dogecoin gains key endorsement promising to increase the network’s utility and may catalyze a new uptrend.
Mark Cuban Embraces Dogecoin
Dogecoin has been on a tear in the last 24 hours. The meme token saw its price surge by more than 17%, going from a low of $0.051 to hit a new monthly high of $0.060.
Market participants have rushed to exchanges to panic buy DOGE after billionaire Mark Cuban said that its market value could skyrocket by a whopping 1,700%.
According to the Shark Tank investor, the Dallas Mavericks has processed over 20,000 DOGE transactions since it started accepting it as payments for tickets and merchandise. Such success has made the professional basketball team the “largest Dogecoin merchant in the world.”
Cuban affirmed that if the Dallas Maverick can process another 6.60 billion Dogecoin worth of merchandise, DOGE will “definitely hit $1.”
Although Cuban’s remarks have generated FOMO among enthusiasts, it is worth noting that the NBA team will have to sell nearly $330 million worth of merchandise for DOGE to reach such a bullish target.
DOGE Primed to Breakout
While a $1 target is far-fetched, Dogecoin is primed to resume its uptrend as its network has drastically expanded over the past few weeks.
IntoTheBlock’s Daily Active Addresses model shows that the number of new addresses created on the Dogecoin blockchain bottomed-out on Feb. 28 at a low of 34,700 addresses per day. Since then, network growth has skyrocketed.
Nearly 60,000 new addresses are being created per day at press time, representing a 73% increase within the examined period.
The network’s expansion can be considered a very optimistic signal as it indicates a spike in user adoption over time. Since this on-chain metric is often regarded as one of the most accurate price predictions, it may forecast that DOGE’s price will follow suit.
Still, Dogecoin must close above the $0.058 resistance barrier to be able to advance higher. Moving past this crucial price hurdle could see the meme coin revisit Jan. 29’s high of $0.089.
Failing to claim $0.058 as support could instead result in a rejection that pushes Dogecoin back to the $0.048 level. This crucial demand barrier will have to hold for DOGE to avoid a steeper decline towards $0.038.
Disclosure: At the time of writing, this author held Bitcoin and Ethereum.