Doge Coin (DOGE) Price: Bulls Eye Next Leg Up as Network Activity Hits Multi-Year Highs

TLDR:

• Large transactions volume increased by 41% to $23.35 billion in 24 hours
• Daily active addresses up 35% to 157,190
• Price corrected from $0.42 to around $0.37 after recent rally
• Social media interest remains below 2021 peak levels
• Technical analysis suggests potential breakout pattern forming

Dogecoin, the popular meme-based cryptocurrency, is experiencing mixed market signals as its price corrects while on-chain activity shows strong growth. The cryptocurrency’s price has pulled back from recent highs, but network metrics indicate continued interest from large traders and regular users alike.

The price of Dogecoin has retreated from its recent peak of $0.42, which marked its highest level since the 2021 bull market. Currently trading at $0.37, the digital asset has undergone a correction that brought it to a low of $0.343 over the weekend, representing a 19.55% decline from its recent high.

Despite the price pullback, on-chain data reveals a notable uptick in network activity. According to analytics platform IntoTheBlock, large transaction volume on the Dogecoin blockchain reached $23.35 billion over a 24-hour period, marking a 41.12% increase compared to the previous day. These large transactions, typically defined as transfers exceeding $100,000, often indicate activity from institutional investors or wealthy individual traders, commonly known as “whales.”

The surge in activity isn’t limited to large traders. The number of daily active addresses on the Dogecoin network has also seen substantial growth, increasing by 34.91% to reach 157,190 addresses. This metric suggests broader participation across the network, including smaller traders and regular users.

Technical analysts have identified potential patterns that could indicate future price movements. A falling wedge pattern has formed since DOGE’s November 14 peak, and some analysts suggest that a breakout from this pattern could lead to another rally, potentially pushing the price toward $0.47.

The recent price movement has also created what some traders identify as a bull flag pattern on shorter timeframes. This technical formation often precedes continued upward momentum, with some analysts pointing to potential targets above $0.80 if the pattern plays out as expected.

Social media sentiment, historically a key driver of Dogecoin’s price action, currently shows lower levels of interest compared to the 2021 bull market peak. However, some market observers suggest this could indicate room for growth rather than a warning sign.

The cryptocurrency’s recent popularity has been influenced by several factors, including discussions around the US presidential election, mentions by Elon Musk, and humorous references to the Department of Government Efficiency (D.O.G.E.).

During the latest price correction, profit-taking appears to have been a major factor, as traders who participated in the recent rally chose to secure their gains. This selling pressure contributed to the price decline below the $0.40 threshold.

Whale activity during this period has been notable, though the direction of these large transactions – whether they represent accumulation or distribution – remains unclear. The increase in transaction volume could indicate either selling pressure or strategic positioning by large holders.

The network has maintained robust technical performance throughout these market movements, processing an increased number of transactions without reported issues. This stability suggests the infrastructure can handle higher activity levels if trading volume continues to grow.

Market observers note that Dogecoin’s price movements often follow distinct patterns of social interest and momentum. The current phase shows strong underlying network metrics despite price weakness, creating an interesting dynamic for traders and analysts to monitor.

Price support levels have formed around the $0.34 mark, where buyers have shown interest during recent dips. Resistance remains near the $0.40 level, which has become a key psychological barrier for traders.

The combination of increased network activity and price correction has created a complex market situation that defies simple interpretation. While some metrics suggest growing interest in the cryptocurrency, price action indicates cautious trading behavior.

Trading volume across major exchanges has remained steady, indicating continued market participation despite the price correction. This sustained trading activity suggests market participants remain engaged with the asset.

Current market data shows the price hovering around $0.37, having recovered approximately 7.6% from its recent low. The next major technical hurdle for Dogecoin appears to be reclaiming the $0.40 level, which could determine the short-term direction of the asset.