Dogecoin is testing a crucial 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 experienced significant volatility, with choppy price action causing uncertainty among investors.
Despite these swings, many analysts and traders believe Dogecoin is primed for a rally, supported by on-chain metrics. According to data from IntoTheBlock, Dogecoin’s network has seen a notable uptick in activity, hinting at growing interest and optimism within the market.
This surge in DOGE activity has raised hopes that a bullish move could be on the horizon. However, Dogecoin must maintain key support levels to prevent further downside. The next few days will be critical in determining the meme coin’s direction for the coming months as investors closely watch whether DOGE can sustain momentum or face additional corrections.
Dogecoin Highest Number Of Transactions Since July
Dogecoin is at a critical turning point, with analysts and investors anticipating a rally that could propel meme coins to higher price levels.
Data from IntoTheBlock, shared on X, reveals that Dogecoin processed 1.93 million transactions last week, marking the highest weekly transaction count since early July. Although still well below the February peak, this surge in activity is a promising sign for the DOGE network, signaling renewed interest and usage.
As network activity increases, Dogecoin benefits from the network effect. In this phenomenon, the value of a cryptocurrency rises as more people use it, making it more desirable and widely adopted.
The rise in transaction volume suggests that more people interact with Dogecoin, which could spur further demand and drive higher prices.
This uptick in activity has boosted optimism among traders and investors who expect Dogecoin to hold above its current level of around $0.10. If it maintains this support, analysts predict an impulse to higher prices, with key targets around $0.12 in the short term.
However, breaking through this resistance will be crucial for Dogecoin to solidify a bullish trend. As the meme coin gains momentum, its next few price movements will determine its trajectory for the coming weeks.
DOGE Technical Analysis: Prices To Watch
Dogecoin (DOGE) trades at $0.1005, following a 9% drop 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 a key indicator of short-term market strength, and bulls will need to reclaim it as support to maintain momentum.
A successful close above the 4-hour 200 EMA would signal buyers are regaining control, setting DOGE up to target higher supply levels around $0.115. This would align with broader market optimism and suggest a potential recovery in the coming days.
However, failure to reclaim this level could result in a deeper correction, as bearish pressure would increase. In this scenario, DOGE could retest local lows around $0.088, where demand may reemerge, but further downside risk remains.
Featured image from Dall-E, chart from TradingView
Credit: Source link
