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The lackluster Dogecoin price action could change very soon as on-chain data suggests increased activity behind the scenes. Particularly, on-chain analytics company IntoTheBlock revealed a surge in daily transactions on the Dogecoin blockchain, pushing the count to its highest point since July.
DOGE has yet to substantially break above the $0.10 price level as it continues to underwhelm. Despite the widespread popularity of the meme-inspired cryptocurrency and its status as a top digital asset, its price action in recent months has failed to deliver explosive gains.
Dogecoin Daily Transaction Reaches 2-Month High
As noted by IntoTheBlock, Dogecoin processed a total of 1.93 million transactions on its blockchain last week. This marks an interesting surge of over 100% from the total number of transactions processed in the prior week. The data highlights a renewed burst of activity on the Dogecoin network that broke the pattern of sluggishness that had defined its performance in recent months. Furthermore, IntoTheBlock highlighted this transaction count as the highest weekly activity recorded since the first week of July, showing a gradual change in sentiment among the Dogecoin community.
Dogecoin processed 1.93 million transactions last week, marking the highest weekly transaction count since early July.
Although still well below the February peak, this uptick is a promising sign for the $DOGE network. pic.twitter.com/9WfNMAaEZo
— IntoTheBlock (@intotheblock) September 17, 2024
Although the transaction count is still low compared to what the Dogecoin blockchain has processed in the past, this one is somewhat important because it comes on the heels of nine consecutive weeks of low transaction counts and minimal growth in on-chain activity. For Dogecoin, activity has been really dry since February and March, when it steadily processed over 10 million transactions for consecutive weeks.
What Does This Mean For DOGE Price?
Rising transaction counts for cryptocurrencies are generally related to a surge in buying momentum among traders. This is especially true in cases when the asset has been stuck in slow activity for a long time. The spike in DOGE transactions signals bullish sentiment among traders, which may positively impact Dogecoin’s price in the short term. However, whether this uptick will translate into sustained price growth remains to be seen at the time of writing.
At the time of writing, Dogecoin is trading at $0.1015, just above the critical $0.10 mark. This slight price increase comes after Dogecoin briefly fell below $0.10 on September 16. Although the meme coin has managed to recover, its price growth has slowed, suggesting that it is facing key resistance at the $0.10 level. Therefore, breaking through this resistance point could be crucial for Dogecoin’s next rally.
According to crypto analyst Ali Martinez, there exists another strong resistance level at $0.11. This price point is key because there are 23,400 addresses currently holding 31 billion DOGE tokens at a loss. As such, a move to breakeven could cause many of them to sell their assets, further contributing to the resistance.
Featured image created with Dall.E, chart from Tradingview.com
