Price: $0.38948 4.3181%
Market Cap: 57.21B 1.7437%
Volume (24h): 8.07B 0.4%
Dominance: 1.7437%
Price: $0.38948 4.3181%
Market Cap: 57.21B 1.7437%
Volume (24h): 8.07B 0.4%
Dominance: 1.7437% 1.7437%
  • Price: $0.38948 4.3181%
  • Market Cap: 57.21B 1.7437%
  • Volume (24h): 8.07B 0.4%
  • Dominance: 1.7437% 1.7437%
  • Price: $0.38948 4.3181%
Home > Information news > Dogecoin network activity goes parabolic — Will DOGE price follow?

Dogecoin network activity goes parabolic — Will DOGE price follow?

Release: 2024/02/03 06:28 Reading: 275

Original author:Cointelegraph

Original source:https://coinmarketcap.com/community/articles/65bd3b8e2c065d72fb70dd6d

Popular memecoin Dogecoin (DOGE) has been trading sideways, above the 200-day exponential moving average (EMA) since Jan. 7. DOGE price is down 0.4% over the last week and 14% over the last month and even though the technical setup hints at further losses for DOGE, the recent spike in network activity is interesting.

Dogecoin network activity surges

Dogecoin is experiencing a significant increase in its network activity. Data from market intelligence firm IntoTheBlock shows over 890,000 new Dogecoin addresses have been created over the past week.

This increase in new addresses coincides with an 86% adoption rate as the new users execute their first transactions on the blockchain.

Additional data from Santiment shows a spike in daily active addresses (DAA), which increased from 124,240 on Jan. 23 to more than 498,000 on Feb. 2.

This resurgence in network activity could be due to the release of the iconic DOOM video game on the Dogecoin blockchain and the upcoming DOGE-1 launch.

A third factor is the increasing use of Dogechain, a layer 2 blockchain built on the Dogecoin network.

These factors have helped generate interest in the Dogecoin network and if this trajectory remains,  DOGE price could react if investors begin to take positions in the token.

However, the technical setup suggests that the price is poised for a deeper correction from the current levels.

Related: Price analysis 2/2: BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE, DOT, LINK

DOGE’s descending triangle could attract more bears 

Since Dec. 6, 2023, DOGE price action has been characterized by a series of lower highs and relatively equal lows around $0.078, and a descending triangle has appeared on the daily chart.

This bearish technical formation is confirmed once the price produces a decisive close below the support line – formed by the equal lows. This projects a drop in price equal to the height of the triangle

Despite this pessimistic outlook, the relative strength index (RSI) is in the neutral zone at 45, a hint at traders’ current indecisiveness.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Selected Topics

  • Dogecoin whale activity
    Dogecoin whale activity
    Get the latest insights into Dogecoin whale activities with our comprehensive analysis. Discover trends, patterns, and the impact of these whales on the Dogecoin market. Stay informed with our expert analysis and stay ahead in your cryptocurrency journey.
  • Dogecoin Mining
    Dogecoin Mining
    Dogecoin mining is the process of adding new blocks of transactions to the Dogecoin blockchain. Miners are rewarded with new Dogecoin for their work. This topic provides articles related to Dogecoin mining, including how to mine Dogecoin, the best mining hardware and software, and the profitability of Dogecoin mining.
  • Spacex Starship Launch
    Spacex Starship Launch
    This topic provides articles related to SpaceX Starship launches, including launch dates, mission details, and launch status. Stay up to date on the latest SpaceX Starship launches with this informative and comprehensive resource.
  • King of Memes: Dogecoin
    King of Memes: Dogecoin
    This topic provides articles related to the most popular memes, including "The King of Memes: Dogecoin." Memecoin has become a dominant player in the crypto space. These digital assets are popular for a variety of reasons. They drive the most innovative aspects of blockchain.