Dogecoin is testing a key price level after a turbulent week that saw a 22% surge from local lows and a sharp 9% drop to its current price. The meme coin has seen significant volatility, with choppy price action causing uncertainty among investors.
Despite these fluctuations, many analysts and traders believe that Dogecoin is poised for a rally, supported by on-chain metrics. According to data from IntoTheBlock, the Dogecoin network has seen a notable increase in activity, indicating growing interest and optimism within the market.
This increase in DOGE activity has raised hopes that a bullish move is in the offing. However, Dogecoin needs to hold key support levels to avoid further declines. The coming days will be crucial in determining the direction of the meme coin for the coming months, as investors keep a close eye on whether DOGE can maintain its momentum or face additional corrections.
Dogecoin Highest Number of Transactions Since July
Dogecoin is at a crucial inflection point, with analysts and investors expecting a rally that could propel memecoins to higher price levels.
Data from IntoTheBlockshared on X, reveals that Dogecoin processed 1.93 million transactions last week, marking the highest weekly transaction count since early July. While still well below its February peak, this increase in activity is a promising sign for the DOGE network, indicating renewed interest and usage.
As network activity increases, Dogecoin benefits from the network effect. This phenomenon is where the value of a cryptocurrency increases as more people use it, making it more desirable and widely accepted.
The increase in transaction volume suggests that more people are interacting with Dogecoin, which could fuel demand and therefore prices.
This surge in activity has fueled optimism among traders and investors, who expect Dogecoin to remain above its current level of around $0.10. If it holds this support, analysts predict a push higher, with key targets around $0.12 in the near-term.
However, breaking this resistance will be crucial for Dogecoin to solidify a bullish trend. As the meme coin gains momentum, the next few price moves will set the course for the coming weeks.
DOGE Technical Analysis: Prices to Watch
Dogecoin (DOGE) is trading at $0.1005, after dropping 9% from recent local highs. The price is testing the 4-hour 200 exponential moving average (EMA) at $0.1029 as resistance after briefly breaking above this level between Friday and Monday.
This EMA is an important indicator of the market’s strength in the short term. Bulls will need to reclaim it as support to maintain momentum.
A successful close above the 4-hour 200 EMA would signal that buyers are regaining control, leading DOGE to target higher supply levels around $0.115. This would tie in with broader market optimism and point to a potential recovery in the coming days.
However, failure to recover from this level could lead to a deeper correction as bearish pressure would increase. In this scenario, DOGE could retest local lows around $0.088, where demand could pick up again, but further downside risk remains.
Main image of Dall-E, chart from TradingView