Dogecoin (DOGE) price has tumbled toward $0.074, down 10% after hitting a three-month peak of $0.082 last week. On-chain analysis examines how DOGE traders have reacted to the recent price dip.
Dogecoin price hangs in the balance as bullish traders fiercely defend the $0.70 support territory. Will the rising network activity and market demand propel an early DOGE price rebound?
Trading Activity Remains High Despite Price Consolidation
Dogecoin’s price slid into a consolidation phase after failing to clear the $0.08 resistance last week. However, the ongoing DOGE price correction has not impacted trading activity negatively. The IntoTheBlock chart below shows that the daily transactions on the Dogecoin network have remained relatively high amid the price decline.
DOGE transaction count reached a three-month peak of 307,810 on Nov. 8. Despite the price drop, Dogecoin traders have exceeded 100,000 confirmed transactions in the last 10 consecutive days, a feat it achieved just once in the previous 60 days combined.
The daily transaction count metric measures the number and volume of on-chain transactions in a given period. An increase in transaction count during a price decline is an indicator that the underlying coin continues to attract steady demand.
If this trend persists, it’s only a matter of time before DOGE price breaks out of its current consolidation phase.
The chart above illustrates that rather than throw in the towel, DOGE remains in high demand among the bullish traders.
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Bulls Remain in Control of Dogecoin Spot Markets with 750 Million DOGE Orders
The aggregate exchange order books chart is another vital on-chain metric that affirms the bulls’ dominance. Recent readings from the trading logs of 14 crypto exchanges show that bullish DOGE traders have placed orders to purchase 758.5 million DOGE. Interestingly, this is significantly higher than the 710 million DOGE coins the bears have listed for sale.
The exchange order books chart depicts the price distribution of the total buy/sell orders for an asset, across various exchanges.
The current market demand exceeding supply by nearly 48.5 million DOGE is a clear indication that many bullish traders are looking to buy the dip rather than exit. In effect, many buyers may be inclined to raise prices to have their orders filled quickly.
In summary, the rising network activity is likely to further intensify the market demand. If this thesis holds, DOGE holders can anticipate a Dogecoin price rebound in the days ahead.
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DOGE Price Prediction: Further Consolidation Before $0.1 Rally
Drawing inferences from the on-chain metrics outlined above, Dogecoin could rebound toward $0.1, if the bulls can hold through the ongoing consolidation phase.
The Global In/Out of the Money (GIOM) data, which groups the current DOGE holders according to their entry prices, also affirms this forecast.
It shows that the bulls have mounted a formidable support buy wall around the $0.07 area. As depicted below, 385,090 holders had bought 52.3 billion DOGE at the average price of $0.07. If those investors HODL firmly, they could trigger an instant Dogecoin price rebound as predicted.
But if the bears overturn that buy wall, DOGE price could tumble toward $0.06.
Still, the bulls could seize control of the market again, if Dogecoin’s price scales $0.1. But, in that case, the 266,430 holders that bought 18.01 billion DOGE at the minimum price of $0.081 could mount a resistance sell wall. But if that resistance gives way, DOGE will likely rally toward $0.1.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/dogecoin-doge-price-early-rebound-signals/