Global blockchain supervision and query platform

English
Download

Dogecoin Sees Surge In Transactions: Is a Massive Breakout on the Horizon?

Dogecoin Sees Surge In Transactions: Is a Massive Breakout on the Horizon? WikiBit 2024-09-18 16:13

Amid the sluggish price performance, Dogecoin is now seeing a rise in one of its major metrics. Recently, data from the market intelligence platform

Tech

Dogecoin Sees Surge In Transactions: Is a Massive Breakout on the Horizon?

Amid the sluggish price performance, Dogecoin is now seeing a rise in one of its major metrics. Recently, data from the market intelligence platform IntoTheBlock revealed that the asset has recently exhibited a surge in transaction activity.

For context, a rise in a crypto assets transaction activity typically indicates increased use and interest in that asset. In the case of Dogecoin, this can suggest higher demand, more user engagement, or growing adoption for DOGE.

This heightened activity sometimes precedes major price movements, signaling potential market sentiment or liquidity changes.

How High Is Dogecoin Transaction Rising?

According to IntoTheBlock, Dogecoin processed 1.93 million transactions last week alone. This figure marks the highest weekly transaction count since early July, suggesting renewed interest and activity within the Dogecoin network.

Although this rise in transaction activity is still below the peak observed in February, it indicates a positive trend that could potentially impact Dogecoins market performance. IntoTheBlock noted, “This uptick is a promising sign for the DOGE network.”

So far, this increased transaction activity seems to have already translated into a positive price movement for the asset. Dogecoin has seen a 2.3% increase in the past day, reaching a trading price of $0.1015.

This is a notable rebound compared to its price earlier this month when DOGE was trading at $0.09. Interestingly, while the rise in price performance has also boosted DOGE‘s market cap, currently at $14.8 billion, the same can’t be said for the assets daily trading volume.

Despite the price increase, DOGEs daily trading volume has seen an opposite trend in recent days, plunging from more than $700 million last week to below $500 million.

Regardless, the rise in transaction activity and price suggests a possible shift in market sentiment toward Dogecoin. This renewed activity could signal a resurgence in market interest, possibly laying the groundwork for further price gains shortly.

Key Resistance Level to Watch

Despite the ongoing positive indicators, Dogecoin faces a crucial test ahead. Prominent crypto analyst Ali recently highlighted in a post on X a key resistance level at $0.11 for Dogecoin, where approximately 23,400 addresses are holding around 31 billion DOGE.

This level is significant as it represents a considerable concentration of holders who could potentially impact the assets price movement.

According to Alis post, should Dogecoin break through this resistance, it could open the door for further upward momentum. However, if it fails to breach this level, it may indicate a period of consolidation or even a possible pullback.

If youre anticipating a #Dogecoin breakout, keep in mind the key resistance level at $0.11, where 23,400 addresses are holding ~31 billion $DOGE!

— Ali (@ali_charts) September 16, 2024

Featured image created with DALL-E, Chart from TradingView

Disclaimer:

The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

  • Token conversion
  • Exchange rate conversion
  • Calculation for foreign exchange purchasing
/
PC(S)
Current Rate
Available

0.00