Dogecoin is currently in a consolidation phase following days of sharp volatility and wild price swings. Since early October, the meme coin has been trading within a tight range, leaving some investors worried about whether the expected DOGE meeting will ever happen. Uncertainty in the market has raised fears that Dogecoin’s price may continue to fluctuate, as bullish momentum appears to have cooled.
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However, new data from Santiment offers a glimmer of hope for DOGE enthusiasts. Key platform metrics show that active addresses on the Dogecoin network have risen to the highest level in eight months. Analysts tend to view this increase in network activity as a positive sign, as more participation and interest can increase price action.
As traders monitor these changes, this rise in active addresses may be the catalyst needed for the next significant Dogecoin rally. The question remains: will this trend be enough to dominate the bullish sentiment around DOGE, or will it remain stuck in its current range?
Dogecoin Network Rising activity
Dogecoin is in the midst of intense speculation as investors and analysts debate its future price action. After enduring weeks of volatility and sharp price swings, the meme coin has reflected the unpredictable nature of the broader crypto market.
Currently rallying above the key $0.10 level, Dogecoin traders are closely watching for signals that could trigger a rally. Investors are eager for clear bullish confirmation, but until now, the market remains in a state of uncertainty.
Important on-chain data gives hope to Dogecoin enthusiasts despite the lack of immediate upward momentum. According to Santiment data, shared by crypto analyst Ali on X, Dogecoin active addresses recently reached 133,880, marking the highest level in eight months.
This increase in network activity is often interpreted as a positive sign, suggesting that more sellers are engaging with the commodity, which may indicate increased demand.
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Higher active addresses generally indicate increased participation, which can put upward pressure on prices if they are maintained. As this trend continues, many investors are hoping that this increased network activity may be the catalyst for the next important DOGE meeting. Whether this growth in activity will translate into higher prices or whether DOGE will continue its lateral integration remains to be seen.
DOGE Value Action: Key Levels of View
Dogecoin is currently trading at $0.111 after spending the last 12 days in a narrow range between $0.101 and $0.115. This consolidation period has kept traders on edge, as the price remains less than 5% below the daily 200 exponential moving average (EMA), which sits at $0.116. In order for the bulls to start a rally and break out of this sideways trend, the price must first break through this critical resistance level.
However, if DOGE fails to maintain momentum and is unable to push above the 1D 200 EMA in the coming weeks, a deeper correction may be on the horizon. In such a situation, traders should look for possible support at lower demand levels. The next key support level is around $0.098, with the worst-case scenario down to $0.088.
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The coming days will be crucial in determining whether Dogecoin can break out of its current slump or face another downside. Investors closely monitor price action and network activity for signs of a potential rally or continued slide to lower support levels.
Featured image from Dall-E, chart from TradingView