Recently, Dogecoin [DOGE] reached a significant milestone in terms of its network usage, signaling a surge in adoption. This milestone coincided with a positive price movement for the memecoin.
Increased Activity on Dogecoin’s Network
A well-known crypto analyst, Ali, shared an intriguing update on Twitter, revealing a noteworthy development. The number of addresses surged to 133,880, marking the highest level in eight months.
Further analysis of Santiment’s data by CryptoCrypto also confirmed a rise in DOGE’s velocity last month, indicating an uptick in transaction usage within a specific period.
Moreover, the memecoin witnessed a rise in transaction counts during the same period, underlining the increasing utilization of DOGE.
Current State of DOGE
According to CoinMarketCap, DOGE’s weekly and daily charts showed positive trends, with DOGE trading at $0.1115 at the time of reporting. While previous reports highlighted a consolidation phase for the world’s largest memecoin, ongoing analysis aimed to uncover potential market shifts.
An examination of whale activities revealed consistent trading patterns over the past week. Furthermore, Dogecoin’s MVRV ratio demonstrated an increase, reflecting a potential change in market dynamics.
Although the MVRV ratio stood at 1.2% currently, indicating room for improvement, a decline in DOGE’s Weighted Sentiment in recent days hinted at growing bearish sentiments around the asset.
Noteworthy is the reading from Dogecoin’s Fear and Greed Index, indicating a state of “greed” at the time of writing. Typically, such levels suggest an impending price correction.
Our analysis suggests that DOGE faces a crucial resistance level currently. A successful breakout could propel Dogecoin towards $0.13 once again. Conversely, bearish market conditions might trigger a correction, potentially leading DOGE to dip to $0.10, with further downside risk towards $0.094 in the near future.