Dogecoin price action is lackluster It may change very soon. On-chain data also points to increased activity behind the scenes. In particular, on-chain analytics firm IntoTheBlock revealed a surge in daily transactions on the Dogecoin blockchain, pushing the number to its highest point since July.
Doug has It’s not broken down too much yet. Above the $0.10 price level, its performance continues to disappoint. Despite the meme-inspired cryptocurrency’s widespread popularity and status as a major digital asset, its price movements in recent months have failed to produce huge gains.
Dogecoin daily transactions hit 2-month high
As noted by IntoTheBlock, Dogecoin processed a total of 1.93 million transactions on its blockchain last week. This represents an impressive increase of over 100% over the total number of transactions processed the previous week. The data highlights a fresh wave of activity on the Dogecoin network that breaks the pattern of sluggishness that has defined its performance in recent months. Furthermore, IntoTheBlock highlighted this transaction volume as the highest weekly activity recorded since the first week of July, indicating a gradual change in sentiment among the Dogecoin community.
Dogecoin processed 1.93 million transactions last week, marking the highest weekly transaction volume since early July.
Although this rise is still well below the February peak, it is a promising sign for doug network. pic.twitter.com/9WfNMAaEZo
— IntoTheBlock (@intotheblock) September 17, 2024
While the transaction count is still low compared to what the Dogecoin blockchain has processed in the past, this is somewhat significant because it comes on the heels of nine consecutive weeks of declining transaction counts and minimal growth in on-chain activity. For Dogecoin, activity has been really dry since February and March, when it steadily processed over 10 million transactions for weeks on end.
What does this mean for DOGE price?
The increasing transaction volume of cryptocurrencies is generally associated with increased buying momentum among traders. This is especially true in cases where the asset has been stuck in a sluggish activity for a long time. The surge in DOGE transactions has led to a significant increase in the number of transactions. Signs of bullish sentiment Among traders, this could have a positive impact on Dogecoin’s price in the near term. However, it remains unclear whether this surge will translate into sustainable price growth at the time of writing.
At the time of writing, Dogecoin is trading at $0.1015, just above the critical $0.10 level. This slight price increase comes after Dogecoin briefly dropped below The meme coin price reached $0.10 on September 16. Although the coin managed to recover, its price growth has slowed down, indicating that it is facing a major resistance at the $0.10 level. Therefore, breaking this resistance point could be crucial for Dogecoin’s next rally.
according to Another strong resistance level is at $0.11, says crypto analyst Ali Martinez. This price point is important because there are 23,400 addresses currently holding 31 billion DOGE tokens at a loss. As such, a move towards breakeven could prompt many of them to sell their holdings, further contributing to the resistance.
Featured image created using Dall.E, chart from Tradingview.com