Dogecoin’s lackluster price action It could change very soon On-chain data suggests increased activity behind the scenes. In particular, on-chain analytics firm IntoTheBlock revealed a surge in daily transactions on the Dogecoin blockchain, pushing the count to its highest point since July.
DOGE has has not yet been substantially broken Above the $0.10 price level, it continues to disappoint. Despite the meme-inspired cryptocurrency’s widespread popularity and status as a top-tier digital asset, its price action over the past few months has failed to generate explosive gains.
Dogecoin daily transaction hits two-month high
As noted by IntoTheBlock, Dogecoin processed a total of 1.93 million transactions on its blockchain last week. This marks an interesting increase of over 100% over the total number of transactions processed in the previous week. The data highlights a new burst of activity on the Dogecoin network that broke the pattern of sluggishness that had defined its performance over the past few months. Furthermore, IntoTheBlock highlighted this transaction count as the highest weekly activity recorded since the first week of July, showing a gradual shift in sentiment among 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 rebound is a promising sign for the $DOGE grid. image.twitter.com/9WfNMAaEZo
— On the Block (@intotheblock) September 17, 2024
While the transaction count is still low compared to what the Dogecoin blockchain has processed in the past, this is a big deal because it comes after nine consecutive weeks of low transaction counts and minimal growth in on-chain activity. In Dogecoin’s case, activity has been really dry since February and March, when it consistently processed over 10 million transactions for consecutive weeks.
What does this mean for the price of DOGE?
The increase in cryptocurrency transactions is usually related to an increase in buying momentum among traders. This is especially true in cases where the asset has been stuck in slow activity for a long time. The increase in DOGE transactions It indicates a bullish sentiment Among traders, this may have a positive impact on the Dogecoin price in the short term. However, it remains to be seen whether this rally will translate into sustained price growth at the time of writing.
At the time of writing, Dogecoin is trading at $0.1015, just above the critical $0.10 mark. This slight price increase comes after Dogecoin briefly fell below $0.10 on September 16. Although the meme coin has managed to recover, its price growth has slowed down, suggesting that it is facing a key resistance at the $0.10 level. Therefore, overcoming this resistance point could be crucial for Dogecoin’s next rally.
According According to cryptocurrency analyst Ali Martinez, there is another strong resistance level at $0.11. This price is key because there are 23,400 addresses currently holding 31 billion DOGE tokens at a loss. Therefore, a move towards breakeven could cause many of them to sell their assets, which would further contribute to the resistance.
Featured image created with Dall.E, chart from Tradingview.com
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