Bitrabo Editorial
The stagnant price movements of Dogecoin might soon see a change, as recent on-chain analytics indicate growing activity. IntoTheBlock, an analytics firm, has reported a notable increase in daily transactions on the Dogecoin blockchain, reaching its highest level since July.
Currently, DOGE has not yet recovered significantly above the $0.10 threshold, leading to some disappointment. Despite its popularity as a meme-based cryptocurrency and its position among leading digital assets, it has not shown substantial price increases in recent months.
Surge in Dogecoin Daily Transactions
IntoTheBlock’s analysis revealed that Dogecoin executed approximately 1.93 million transactions last week. This represents over a 100% increase compared to the previous week’s transaction count. This change reflects a revitalization in Dogecoin network activity, breaking a long-standing trend of stagnant performance. Notably, this transaction record indicates the highest weekly activity since early July, suggesting an evolving sentiment within the Dogecoin community.
Dogecoin processed 1.93 million transactions last week, marking the highest weekly transaction count since early July.
Although still well below the February peak, this uptick is a promising sign for the $DOGE network. pic.twitter.com/9WfNMAaEZo
— IntoTheBlock (@intotheblock) September 17, 2024
While the recent transaction numbers are still lower than earlier figures for Dogecoin, this increase is significant after a consistent nine weeks of low activity and stagnant growth. The network had been experiencing a dry spell since February and March, well when it handled over 10 million transactions weekly.
Implications for DOGE Pricing
An increase in transaction counts for cryptocurrencies often signals a rise in trading momentum. This is particularly true when an asset has been inactive for an extended period. The rise in DOGE transactions indicates a positive investor sentiment, which may lead to a short-term price increase for Dogecoin. However, it remains uncertain if this uptick will result in lasting price growth as of now.
As of now, Dogecoin trades at $0.1015, just crossing the crucial $0.10 threshold. This small increase follows a dip below $0.10 on September 16. Although Dogecoin has bounced back, its growth pace seems to be slowing, indicating potential resistance at the $0.10 level. Thus, overcoming this resistance could be vital for the next potential rally for Dogecoin.
Crypto analyst Ali Martinez mentions another significant resistance point at $0.11. This level is crucial because 23,400 addresses hold 31 billion DOGE tokens at a loss. Should the price approach breakeven, many holders might sell, which could further intensify the resistance.