Despite the weak price performance, Dogecoin is now seeing an uptick in one of its key indicators. Recently, data from market intelligence platform IntoTheBlock revealed that the asset has recently seen an increase in transaction activity.
To put things in context, an increase in transaction activity for a crypto asset typically indicates increased usage and interest in that asset. In the case of Dogecoin, this may suggest higher demand, greater user engagement, or growing adoption of DOGE.
This increased activity sometimes precedes major price movements, signaling potential changes in market sentiment or liquidity.
How Much Are Dogecoin Transactions Increasing?
According to IntoTheBlock, Dogecoin processed 1.93 million transactions last week alone. This figure represents the highest number of weekly transactions since early July, suggesting a renewed interest and activity within the Dogecoin network.
While this increase in transaction activity is still below the peak seen in February, it indicates a positive trend that could potentially impact the performance of the Dogecoin market. IntoTheBlock noted, “This increase is a promising sign for the DOGE network.”
So far, this increased transaction activity already seems to have translated into positive price movement for the asset. Dogecoin has seen a 2.3% increase over the past day, reaching a trading price of $0.1015.
This is a notable rebound from its price earlier this month, when DOGE was trading at $0.09. Interestingly, while the surge in price performance has also boosted DOGE’s market cap, currently at $14.8 billion, the same cannot be said for the asset’s daily trading volume.
Despite the price increase, DOGE’s daily trading volume has seen an opposite trend in recent days, dropping from over $700 million last week to less than $500 million.
Regardless, the increase in transaction activity and price suggests a possible shift in market sentiment toward Dogecoin. This renewed activity could signal renewed market interest, perhaps laying the groundwork for further price increases soon.
Key resistance level to watch
Despite the ongoing positive indicators, Dogecoin faces a crucial test ahead. Prominent crypto analyst Ali recently pointed out in a job on X, a key resistance level at $0.11 for Dogecoin, where around 23,400 addresses hold around 31 billion DOGE.
This level is important because it represents a considerable concentration of holders who could potentially impact the price movement of the asset.
According to Ali’s post, if Dogecoin breaks through this resistance, it could open the doors for further upward momentum. However, if it fails to break through this level, it could indicate a period of consolidation or even a possible pullback.
If you are planning a #Dogecoin breakout, keep in mind the key resistance level at $0.11, where 23,400 addresses hold around $31 billion $DOGE! pic.twitter.com/iAP28te0bl
— Ali (@ali_charts) September 16, 2024
Featured image created with DALL-E, chart by TradingView
