This article is also available in Spanish.
Dogecoin is currently going through a consolidation phase after days of intense volatility and wild price swings. Since the beginning of October, the meme has been trading within a narrow sideways range, which has some investors concerned about whether DOGE’s expected rally will ever materialize. Market uncertainty has heightened fears that Dogecoin’s price could stagnate further, as bullish momentum appears to have slowed.
Related reading
However, new data from Santiment offers a glimmer of hope for DOGE enthusiasts. Key platform metrics show that active addresses on the Dogecoin network have risen to their highest level in eight months. Analysts often view this spike in network activity as a positive sign, as increased engagement and interest can push price action higher.
As traders monitor these developments, this rise in active addresses could serve as the catalyst needed for Dogecoin’s next significant rally. The question remains: Will this trend be enough to reignite bullish sentiment around DOGE, or will it remain stuck in its current range?
Dogecoin network activity spikes
Dogecoin is at the heart of intense speculation as investors and analysts debate future price movements. After long weeks of volatility and sharp price swings, the meme coin reflected the unpredictable nature of the broader cryptocurrency market.
Dogecoin traders are currently consolidating above the key $0.10 level, closely monitoring signals that could lead to a rally. Investors are looking for clear bullish confirmation, but so far the market remains in a state of uncertainty.
The significant on-chain data provides some hope for Dogecoin enthusiasts despite the lack of immediate upward momentum. According to Santiment data. Shared by crypto analyst Ali on XActive Dogecoin addresses recently rose to 133,880, the highest level in eight months.
This rise in network activity is often interpreted as a positive sign, indicating that more traders are transacting with the asset, which could indicate higher demand.
Related reading
Higher active addresses generally indicate increased participation in transactions, which could put upward pressure on prices if it continues. As this trend emerges, many investors are hoping that this increased network activity will serve as a catalyst for DOGE’s next big rally. Whether this increase in activity will translate into higher prices or whether DOGE will continue its sideways consolidation remains to be seen.
DOGE Price Action: Key Levels to Watch
Dogecoin is currently trading at $0.111 after spending the last 12 days in a narrow range between $0.101 and $0.115. This period of consolidation kept traders on edge, as the price remained just 5% below the daily Exponential Moving Average (EMA) 200, which is located at $0.116. For the bulls to start going higher and break out of this sideways trend, the price must first break through this critical resistance level.
However, if DOGE fails to maintain momentum and is unable to push above the 1D 200 EMA in the coming weeks, a deeper correction could be on the horizon. In such a scenario, traders should monitor potential support at lower demand levels. The next major support level is around $0.098, with the worst case scenario falling to $0.088.
Related reading
The coming days will be crucial to determine whether Dogecoin can break out of its current range or face further decline. Investors are closely monitoring price action and network activity for signs of a potential rally or continued slide to lower support levels.
Featured image by Dall-E, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.