Amid the sluggish price performance, Dogecoin is now seeing a rise in one of its key metrics. Recently, data from market intelligence platform IntoTheBlock revealed that the asset has recently seen a sharp increase in transaction activity.
For context, an increase in transaction activity for a crypto asset generally indicates increased use and interest in that asset. In the case of Dogecoin, this could indicate increased demand, increased user engagement, or growing adoption of DOGE.
This increased activity sometimes precedes large price movements, indicating potential market sentiment or liquidity changes.
How high does the Dogecoin transaction increase?
According to IntoTheBlock, Dogecoin processed 1.93 million transactions last week alone. This figure marks the highest number of weekly transactions since early July, indicating renewed interest and activity within the Dogecoin network.
While this increase in transaction activity is still below the February peak, it signals a positive trend that could potentially impact Dogecoin’s market performance. IntoTheBlock noted: “This uptick is a promising sign for the DOGE Network.”
So far, this increased transaction activity appears to have already translated into 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 recovery compared to the price earlier this month, when DOGE was trading at $0.09. Interestingly, while the increase in price performance has also increased DOGE’s market capitalization, currently at $14.8 billion, the same cannot be said for the asset’s daily trading volume.
Despite the price increase, DOGE’s daily trading volume has shown an opposite trend in recent days, falling from over $700 million last week to less than $500 million.
Regardless, the increase in transaction activity and price indicates a possible shift in market sentiment towards Dogecoin. This renewed activity could signal a revival of market interest, potentially laying the groundwork for further price increases in the near term.
Important resistance level to keep an eye on
Despite the persistent positive indicators, Dogecoin faces a crucial test. Prominent crypto analyst Ali recently highlighted in a after at
This level is significant because it represents a significant concentration of holders who can potentially influence the price movement of the asset.
According to Ali’s post, if Dogecoin were to break through this resistance, it could open the door for further upward momentum. However, if it fails to breach this level, it could indicate a period of consolidation or even a possible pullback.
If you are expecting one #Dogecoin breakout, take note of the key resistance level at $0.11 where 23,400 addresses ~31 billion $DOGE! pic.twitter.com/iAP28te0bl
— Ali (@ali_charts) September 16, 2024
Featured image created with DALL-E, Chart from TradingView
Credit : www.newsbtc.com
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