Dogecoin Rockets to 8-Month High in Activity, Not Price

Cover image via U.Today

Dog-themed cryptocurrency Dogecoin (DOGE) has recently experienced a significant surge in network activity, although its price remains unchanged.

According to crypto analyst Ali Martinez, the number of active Dogecoin addresses has skyrocketed to 133,880, marking an eight-month high.

Active #Dogecoin addresses recently surged to 133,880—the highest level in 8 months! pic.twitter.com/DojEsDscXk

— Ali (@ali_charts) October 12, 2024

This increase in active addresses indicates growing interest and engagement within the Dogecoin community. Active addresses are a useful measure for monitoring network activity over time. Generally, increasing daily active addresses indicate increased blockchain usage, while a drop points to a lower demand for the network.

Traditionally, growth in daily active addresses is linked to an increase in price as demand for network usage is directly related to the demand for the blockchain’s native cryptocurrency. However, the Dogecoin price has not responded to the recent network activity growth.

Dogecoin Thriving in Short-Term Trader Activity

On-chain analytics firm IntoTheBlock indicated that Dogecoin is thriving in short-term trader activity, leaving other meme tokens behind.

Short-term trader activity plays a significant role in meme coins. DOGE unsurprisingly leads the pack with the highest number of short-term traders.

DEGEN, a meme coin, is seeing 23,000 active short-term traders, which matches Shiba Inu's while accounting for only 10% of its market capitalization. The disparity between meme coins is enormous, with numerous mid-sized tokens reporting trader figures of about 4,000.

Dogecoin Price Action

Dogecoin has been trading above the 50-day SMA at $0.105 for the past few days after rebounding from a low of $0.102 on Oct. 10.

Dogecoin's price rose sharply in Friday's trading session as buyers bought the dip. This rebound is currently ongoing, with the DOGE price poised to register the third day of gains if today concludes in the green.

At the time of writing, Dogecoin was up 0.24% in the last 24 hours to $0.111.

If bulls want to gain an advantage, they must keep the DOGE price above $0.11. If they do it, Dogecoin may attempt to rally to $0.13. On the other hand, if the Dogecoin price falls below the 50-day SMA, it could indicate that the bulls have given up. That could sink the Dogecoin price to $0.08.