ogecoin, the popular meme-based cryptocurrency, has recently seen an uptick in network activity. According to crypto analyst Ali Martinez, the number of active Dogecoin addresses hit 133,880-the highest in 8 months, showing that traders have become interested in the asset.
This uptick in network activity has not manifested in price, still locked in the consolidation range between $0.10-$0.13.
Activity on Network Surges
Increasing active addresses is indicative of participation in the Dogecoin community. Generally, the number of active addresses forms the basis for using a blockchain, and the recent increase means an increase in the number of traders getting involved in the market. Despite this positive trend in network activity, the price of DOGE still hovers around $0.111 with no uptick.
IntoTheBlock, another on-chain analytics firm, has also noted that Dogecoin is at the front in terms of short-term trader activity, out-competing other meme coins such as Shiba Inu and PEPE. While DOGE is leading within the meme coin segment with 23,000 short-term traders, other tokens report significantly lower trader numbers.
Price Stability and Market Sentiment
The price is staying rather consistent despite such a noticeable growth of network activity. DOGE changed hands above the 50-day SMA at $0.105, having recovered from a low of $0.102 on October 10. In the last 24 hours, the price went up by 0.24%, which could indicate that traders are somewhat optimistic but cautious.
Analysts say the price needs to remain firmly above the $0.11 level to retain its bullish momentum. The coin may even be able to retest the resistance at $0.13 on consistent price action above the mark. On the other hand, a slip below the 50-day SMA may be a signal for a bearish outlook, and forecasts are that the price may drop down to $0.08.
Future Outlook for Dogecoin
Currently, the market has been a mixed bag for Dogecoin proponents, as the active addresses increased, but analysts indicate that a price increase in tandem with the action inside the network is needed. A subsequent successful breakout above the resistance of $0.13 might position DOGE for more upside action toward new highs.
Conversely, if the price remains flat or continues to decline, the community will inevitably lose some of its excitement over time. For now, however, many within the Dogecoin community still believe more trading will somehow equate to a price surge.
Although this may seem promising for the network activity of Dogecoin, it does indeed indicate how complex the present market has become-to think that such a surge has not converted into price growth. For investors to stir through this development, close attention is called for with regard to both network metrics and price movements.
