Development Activities Influence Dogecoin Price

Development Activities Influence Dogecoin Price

Development activities were initially not considered a significant factor in Dogecoin's (DOGE) price fluctuations. However, recent metrics suggest this assumption may not hold true.

At the time of writing, development activities on the DOGE network remained stable, unchanged since April 24. Notably, during this period, DOGE's price has consolidated between $0.13 and $0.16.

DOGE Development Activity

Development activity measures the publicly visible contributions and progress made by individuals working on a project's network. Historically, a surge in development activity has often coincided with a price increase. For instance, from February to March 2023, development activity rose from 0.39 to 16.24, accompanied by a price increase from $0.08 to $0.14. A similar pattern emerged between October and November 2023.

Therefore, it is plausible to assume that an upswing in development activity may trigger a price rise, while a decline could lead to a price drop. However, repeating the performance of February and March 2023 may be challenging for DOGE.

Liquidation Levels

Liquidation levels indicate price zones where significant trading events may occur. When a trader's open position is forcibly closed due to unmet conditions, a liquidation event occurs.

As of the time of writing, the liquidation level between $0.15 and $0.16 appeared insufficient, potentially putting DOGE's price at risk. This suggests a period of horizontal movement and consolidation for DOGE.

However, in a pessimistic scenario, the price could drop to $0.12.

Cumulative Liquidation Levels Delta (CLLD)

DOGE's CLLD, which measures the duration of liquidation events, was positive at the time of writing. A positive CLLD indicates longer liquidation events, suggesting a potential price pullback. If this trend persists, DOGE's price could decline to $0.12.

The original article appeared on COINTURK NEWS: Development Activities Influence Dogecoin Price