- Dogecoin’s active addresses jumped 47% in a month, signaling increased engagement and potential market interest.
- The elevated activity levels in DOGE have not translated into a price increase because the market has stayed stable at $0.1659.
- The recent movement of tokens from Dogecoin shows a net negative balance which suggests a cooling-down period for investor sentiment after a surge in selling activity.
The Dogecoin network shows significant growth through increased network operations. The Dogecoin network experienced a 47% rise in active addresses during the last month as the number grew from 110,000 to 163,000. The network activity demonstrates upward momentum as Dogecoin maintains its steady price position at $0.1659 during the last 24 hours with a slight 0.2% increase.
Dogecoin Sees Surge in Active Addresses but Price Remains Steady
The sharp rise in active addresses suggests increased engagement within the Dogecoin ecosystem. Higher active addresses indicate increased user engagement in the Dogecoin network with various potential reasons including retail market expansion and speculator interest as well as trader transaction volumes. The current rise in active addresses holds greater importance because Dogecoin has traditionally been known as an experimental currency characterized by short-term popularity spikes.
Despite the spike in network activity, Dogecoin’s price has not experienced major volatility. Over the last 24 hours, its price has fluctuated within a tight range of $0.1656 to $0.1726. This stability may indicate that while participation is increasing, substantial buying pressure has yet to materialize.
If this current trend persists Dogecoin might advance steadily toward resistance situated at $0.18 during the approaching period. A successful bullish breakout would drive the price beyond $0.20. Slowdown in network activity may cause Dogecoin to return to its support zone which sits at $0.16.
Dogecoin Faces Selling Pressure as Outflows Outpace Inflows
During late October to mid-November Dogecoin (DOGE) recorded a major price increase that exceeded $0.50 before beginning its descent. During this rally investors poured substantial funds into the market demonstrating their strong conviction about DOGE at that time.
Source:Coinglass
Since reaching its highest price point DOGE has experienced an unbroken price decline leading to its current value at approximately $0.20. Since November the accompanying net flow bars reveal that outflows exceed inflows continuously. During this distribution phase investors sell their assets because they aim to profit or move their resources into different investments.
