DOGS token has been on a downward trend relative to the US dollar in the past week.
At present, DOGS is being traded at $0.001056, indicating a 3.47% drop in the last 24 hours and an 18.37% decrease over the previous seven days.
With a supply of 520 billion DOGS circulating, the project’s market cap stands at $545,919,186 as of the current press time.
Despite a strong initial performance, the recent downtrend of DOGS comes as a surprise, especially given its recent integration into the expanding Toncoin ecosystem.
If a projected breakout materializes, it could signal a significant shift in the short-term price movements of the token.
Potential Upside Indicated by Technical Analysis
DOGS is currently priced at $0.0010587, positioned close to the middle of the Bollinger Bands. The lower band sits at $0.0009783, with the upper band at $0.0011140, suggesting a period of decreased volatility.
A modest 1.04% upward momentum in the latest 4-hour candle serves as an early indicator of stabilization following recent declines.
The Money Flow Index (MFI) records at 55.26, indicating a moderate buying trend without reaching the overbought territory.
This suggests a potential price increase in the short term, with a shift to a more bullish pattern contingent upon the MFI surpassing 75.
Meanwhile, the Relative Strength Index (RSI) stands at 45.72, signaling a market close to neutral sentiment, albeit with slight bearish undertones.
Traders are on the lookout for an RSI move above 50, signaling a shift towards increased buying pressure.
Concerns Arise Over Decrease in Network Activity
Data from IntoTheBlock depicts a notable decrease in daily active addresses over the past week.
The peak in active addresses recorded on September 5th around 1.05 million, with a subsequent decline of 33.71% shown in the 7-day change.
This decrease indicates a significant drop in user engagement, likely tied to the recent decline in DOGS’ value.
Despite the drop in active addresses, daily transaction volumes have remained relatively steady. On September 5th, daily transactions amounted to 655.29k, slightly below the 7-day average of 774.56k transactions.
While there was a recent surge to 1.9 million transactions on September 3rd, the fluctuations imply inconsistent user participation in recent days.