Dogecoin activity rises 28% on SpaceX IPO hype

The Dogecoin network has seen increased engagement in recent days, though that activity has yet to translate into market gains. Activity has risen by 28% following reports of a potential SpaceX IPO, though the market has yet to see a breakout.

According to market analyst Ali Martinez, Dogecoin active addresses rose from 57,000 to 73,000. Normally, an increase in users often signals wider adoption, though part of that activity may come from users relocating assets or trying out different features. Moreover, more active addresses indicate that wallets are engaging more with Dogecoin and occasionally building positions, a factor that, overall, improves sentiment.

Market data shows Dogecoin’s current price movements are forming a descending triangle

Martinez showed that Dogecoin’s trading range is consistently shrinking toward a focal point, with an anticipated move of 29% once the current trendline breaks. Most market commentary has largely resonated with this view. Usually, descending triangles tend to favor a more downside move; not all patterns follow through. In this case, DOGE remains above key support as traders await a clear signal.

At the moment, the Relative Strength Index (RSI) is 34, close to the typical threshold that triggers so-called ‘oversold’ alerts by technical analysts. But the Moving Average Convergence Divergence (MACD) is also losing momentum, hinting that selling pressure might be decreasing.

Increased active addresses have in the past been in connection with accumulation cycles. If the network’s engagement continues to rise and prices remain low, then the analysts will likely classify the period as an accumulation phase rather than an inertia phase.

Currently, Dogecoin remains range-bound between $0.089 and $0.091, with a primary resistance target at $0.10. If it can rise above $0.10, analysts suggest it may soon surpass targets at $0.105 and $0.12.

SpaceX is reportedly pursuing an IPO to raise $75 billion

In response to the reports, some analysts believe it’s highly likely that the company is still aiming for a June listing. Earlier in March, CEO Elon Musk had also stated the firm is pursuing a valuation of $1.75 trillion.

Meanwhile, there had been earlier speculation that SpaceX might merge with Tesla Inc. However, some have argued that integrating SpaceX into Tesla would likely inflate the share count, ultimately reducing the value of current holdings for EV investors.

Still, Wedbush analyst Dan Ives recently reiterated his forecast that the two companies will merge in 2027. According to him, the foundation for a combined company is currently being established as the business links between the firms grow stronger.

He attributed his prediction to the latest announcement of a joint Terafab facility in Austin, Texas. Two state-of-the-art chip factories would be built at the site—one for Tesla’s vehicle and robot AI, the other for SpaceX’s space data center initiatives. Terafab, Ives noted, marks the first move toward fully merging operations between the firms.

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