In the past month, DOGE holders have experienced a 25% pullback.Despite the recent price drop, user activity on the internet continues to surge
- In the past month, DOGE holders have experienced a 25% pullback.
- Despite the recent price drop, user activity on the internet continues to surge.
- The trading volume of dog coins indicates an imminent rebound.
DOGE holders are preparing to rebound after a 25% pullback in February. Despite the recent price drop, online activity has been increasing. Is this enough to stimulate bulls to take action?
With the surge of online activities, positive disagreements
In the past 30 days, the world's largest emoticon coin by market value has fallen by nearly 25%. Nevertheless, critical analysis of on chain data suggests that an increase in online activity may stimulate a rebound.
According to data compiled by cryptocurrency analysis company Santiment, there has been a recent surge in daily active addresses on the Dogcoin network.
Since March 1st, the number of daily active DOGE addresses has skyrocketed by 40%, while prices have decreased. The positive deviation between dog coin prices and daily active addresses indicates that new cryptocurrency market participants may be trying to buy on dips.
The daily active address measures the number of unique addresses that interact on the network every day. From a historical perspective, there have been frequent peaks in daily active addresses prior to previous DOGE gatherings.
Similarly, careful observation of the trading volume on the DOGE network in recent days has also painted an optimistic picture. The daily trading volume of DOGE has doubled in the past 7 days, reaching its highest daily throughput in 2023.
From the historical positive correlation with prices, it seems reasonable for DOGE holders to expect price increases to follow recent trends.
DOGE Price Forecast: Strong Resistance Ahead
Regarding price forecasting, the following IntoTheBlock's Global Fund In/Out (GIOM) data provides relevant insights.
Currently, only 24.5% of DOGE holders are in a profitable state. This indicates that most cryptocurrency investors may avoid selling when there are significant losses near the current price.
On chain data shows that the next price rebound of Dog Coin may be tested near the $0.075 area, and 81000 addresses holding 35 billion DOGE may determine profit taking.
However, if Dogcoin crosses this barrier, it may encroach on $0.084, with nearly 400000 addresses holding 34 billion tokens.
Alternatively, if the situation turns bearish, purchasing 333000 addresses worth 4.8 billion DOGE for around $0.64 would provide significant support. However, given the low trading volume near this level, Dogcoin may further decline when corrected to around $0.56, with 435000 addresses having purchased 6.7 billion DOGs.
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