Dogecoin is testing a key price level after a tumultuous week that saw a 22% rise from local lows and a sharp 9% drop to its current price. The meme coin has experienced significant volatility, negative price action causing uncertainty for investors.
Despite these fluctuations, many analysts and traders believe that Dogecoin is destined for a rally, supported by on-chain metrics. According to data from IntoTheBlock, the Dogecoin network has seen a significant increase in activity, suggesting growing interest and optimism in the market.
This burst of DOGE activity has raised hopes that a bullish move may be imminent. However, Dogecoin should maintain key support levels to prevent further declines. The next few days will be crucial in determining the meme coin’s direction in the coming months as investors closely monitor whether DOGE can sustain momentum or face further corrections.
Dogecoin Highest number of transactions since July
Dogecoin is in a critical state of change, analysts and investors are waiting for a rally that can propel the 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 volume since early July. Although still well below the February peak, this increase in activity is a promising sign for the DOGE network, indicating renewed interest and usage.
As network activity increases, Dogecoin benefits from the network effect. In this case, the value of cryptocurrency increases as more people use it, making it more desirable and widely accepted.
The increase in transaction volume suggests that more people are interacting with Dogecoin, which may cause continued demand and drive prices higher.
This surge in activity has boosted optimism among traders and investors who expect Dogecoin to hold above its current $0.10 level. If it maintains this support, analysts predict a push to higher prices, with a key target of around $0.12 in the short term.
However, breaking this resistance will be important for Dogecoin to strengthen the bullish trend. As the meme coin gains momentum, its next price movement will determine its trajectory in the coming weeks.
DOGE Technical Analysis: Prices to Watch
Dogecoin (DOGE) is trading at $0.1005, following a 9% decline from recent local highs. The price is testing the 4-hour exponential moving average (EMA) at $0.1029 as resistance after briefly crossing above this level between Friday and Monday.
This EMA is a key indicator of short-term market strength, and bulls will need to re-search it as support to maintain momentum.
A successful close above the 4-hour EMA would indicate that buyers are regaining control, setting DOGE to target higher supply levels around $0.115. This would be in line with broader market optimism and suggest a possible recovery in the coming days.
However, failure to recover this level can cause a deep correction, as the bearish pressure will increase. In this scenario, DOGE can retest the local downside around $0.088, where demand may re-emerge, but some downside risk remains.
Featured image from Dall-E, chart from TradingView