As a seasoned researcher with years of experience in the cryptocurrency market, I find myself intrigued by the recent surge in Dogecoin (DOGE) network activity. Despite the persistent range trading in its price, the number of active DOGE addresses has reached an eight-month high, indicating a growing interest and engagement within the community.
As a researcher delving into the fascinating world of digital currencies, I’ve noticed an intriguing development with Dogecoin (DOGE). Contrary to popular belief that a surge would manifest in its market value, this growth seems to be more evident in its network activity rather than its price.
As per crypto expert Ali Martinez’s analysis, there has been a significant increase in the number of active Dogecoin accounts, reaching an eight-month high of 133,880.
Active #Dogecoin addresses recently surged to 133,880—the highest level in 8 months!
— Ali (@ali_charts) October 12, 2024
The rising number of active Dogecoin addresses suggests a surge in community involvement and interest. These active addresses serve as a valuable tool for tracking network activity over time. Typically, an upward trend in daily active addresses signifies higher usage of the blockchain, whereas a decline might indicate decreased demand for the network.
The expansion of daily active users on a network often correlates with an uptick in its currency’s price because network usage demand closely mirrors the desire for the blockchain’s native cryptocurrency. Yet, the value of Dogecoin remains confined to range trading, despite the network’s growing activity.
Dogecoin thriving in short-term trader activity
Previously, the on-chain analysis company IntoTheBlock pointed out that Dogecoin is experiencing a surge in activity among short-term traders, outpacing other popular meme coins.
The actions of short-term investors significantly influence meme coins, and it’s no surprise that Dogecoin (DOGE) consistently has the most active short-term traders among them.
DEGEN, a popular meme token, currently has approximately 23,000 active short-term traders, a number comparable to Shiba Inu‘s. However, it represents only 10% of Shiba Inu’s total market capitalization, indicating a significant gap between these meme coins. Many mid-sized meme tokens report around 4,000 active traders, highlighting the vast disparity in their trading activity.
Dogecoin price action
For several days now, Dogecoin has been moving above its 50-day Simple Moving Average (SMA), currently at about $0.105, following a bounce back from a low of $0.102 on October 10th.
On Friday, the value of Dogecoin increased significantly during trading due to an increase in buying activity as investors took advantage of a price drop. This upward trend has continued, and if today ends with a positive market close, Dogecoin could record its third consecutive day of growth.
At the time of writing, Dogecoin was up 0.24% in the last 24 hours to $0.111.
To ensure a favorable position, bulls should strive to maintain the Dogecoin value above 11 cents (USD). If successful, Dogecoin might aim for a surge towards 13 cents. Conversely, if the Dogecoin value drops below its 50-day Simple Moving Average (SMA), this could signal that bulls are losing ground. This situation may cause the price of Dogecoin to plummet to 8 cents.
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2024-10-13 12:34