The price movements of Dogecoin over the last month have been rather disappointing, as the asset struggles to surpass the $0.10 resistance level.
Nonetheless, this situation may soon shift as network interest has increased, with many analysts on X predicting a potential rally on the horizon.
Increasing Transaction Volume
A rise in transactions on a specific blockchain reflects overall interest and usage, indicating investors’ behavior concerning the network and its native token. For Dogecoin, the past few months have been tough, with the total transaction count significantly dropping from the yearly highs seen in February.
However, this trend reversed last week. According to data from IntoTheBlock, the largest blockchain in the meme coin space processed 1.93 million transactions last week, marking the highest weekly total in over three months.
It’s worth noting that DOGE’s price traded above $0.2 following the network’s record transaction count in February and March this year. Consequently, the rising transaction metric could signal another rally for the biggest meme coin.
Dogecoin processed 1.93 million transactions last week, representing the highest weekly transaction count since early July.
While still below the peak in February, this increase is an encouraging sign for the $DOGE network. pic.twitter.com/9WfNMAaEZo
— IntoTheBlock (@intotheblock) September 17, 2024
Could DOGE Ignite Altseason?
I had someone inquire about a Dogecoin update…
I wish there was more excitement, but I anticipate it to remain relatively uneventful in the range I indicated in my last post in this thread.
However, 2025 is going to be lit. pic.twitter.com/7dYwo0LhhC
— K A L E O (@CryptoKaleo) September 16, 2024
According to another analyst, Ali, the key resistance level to watch is at $0.11, as 23,400 addresses currently hold approximately 31 billion DOGE at that price. This could create potential selling pressure if these holders decide to cash out when they break even.
If you’re anticipating a #Dogecoin breakout, remember the crucial resistance level at $0.11, where 23,400 addresses are holding around 31 billion $DOGE! pic.twitter.com/iAP28te0bl
— Ali (@ali_charts) September 16, 2024
Ted, a crypto analyst with over 120,000 followers, believes that a significant DOGE pump could herald the start of a true altseason, similar to what occurred in 2020/21 and Q4 2023. Their chart suggests that current movements resemble those from 2021, which could lead to a “face-melting” altseason.
$DOGE pumps invariably trigger Altseason
This phenomenon was observed in 2020-21 and also during Q4 2023.
Currently, $DOGE is exhibiting a similar fractal pattern as seen in 2021.
If DOGE begins to gain traction, prepare for a face-melting #Altseason pic.twitter.com/FhXyTmm4rt
— Ted (@TedPillows) September 16, 2024
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