Dogecoin is currently at a pivotal price point after a tumultuous week that featured a 22% rise from recent lows, followed by a rapid 9% decline to its present value. The meme coin has undergone notable fluctuations, leading to uncertainty among traders and investors.
In spite of these fluctuations, several analysts and traders are optimistic about a potential rally for Dogecoin, bolstered by on-chain analytics. Data from IntoTheBlock indicates a significant increase in network activity for Dogecoin, signaling an uptick in interest and positive sentiment in the market.
This increase in DOGE transactions has ignited optimism regarding a possible bullish movement. However, it’s essential for Dogecoin to uphold key support levels to avert further declines. The upcoming days will be crucial in ascertaining the meme coin’s trajectory for the future as investors watch to see if DOGE can maintain its momentum or face more corrections.
Dogecoin Sees Highest Transaction Volume Since July
Dogecoin is at a significant crossroads, with market analysts and investors looking forward to a potential rally that may elevate meme coins to greater price levels.
Data from IntoTheBlock, shared on X, reveals that Dogecoin recorded 1.93 million transactions last week, marking the highest weekly transaction volume since the beginning of July. Although this is still lower than the peak in February, the increase in activity is a hopeful sign for the DOGE network, indicating revived interest and utilization.
As activity on the network grows, Dogecoin stands to gain from the network effect, wherein the value of a cryptocurrency increases as its user base expands, enhancing its desirability and adoption.
The rise in transaction frequency indicates that more users are engaging with Dogecoin, which could further generate demand and elevate prices.
This rise in activity has fueled optimism among traders and investors, who are hopeful that Dogecoin will hold above its current level of roughly $0.10. If this support is maintained, analysts forecast potential upward momentum, eyeing target levels around $0.12 in the near term.
However, breaching this resistance will be essential for Dogecoin to solidify a bullish trend. As the meme coin gathers momentum, its subsequent price movements will be pivotal in outlining its path for the weeks to come.
DOGE Technical Analysis: Key Prices to Monitor
Currently, Dogecoin (DOGE) is trading at $0.1005, following a 9% drop from its recent local highs. The price is testing the 4-hour 200 exponential moving average (EMA) at $0.1029 as a resistance level after briefly surpassing it between Friday and Monday.
This EMA serves as an important indicator of short-term market strength, and bulls must reclaim it as support to sustain momentum.
A successful close above the 4-hour 200 EMA would indicate that buyers are regaining control, positioning DOGE to aim for higher resistance levels around $0.115. This would align with a broader market optimism and suggest a possible recovery in the upcoming days.
Conversely, failing to reclaim this level could lead to a more considerable correction, as bearish pressure mounts. In such a case, DOGE might retest local lows around $0.088, where buying interest could reappear, but the risk of further declines remains.
Featured image from Dall-E, chart from TradingView
Dutch
English
French
German
Greek
Italian
Portuguese
Russian
Spanish