Is Dogecoin Starting to Rise Again? On-Chain Metrics See Significant Increase

Summary:
Dogecoin recently experienced a 4% increase, with trade prices reaching $0.14 and market capitalization around $21 billion. This rise is linked to a notable uptick in on-chain activity, including a surge in daily active wallets, as investors and market analysts take notice.

Key Takeaways

Price Movement: Dogecoin’s value increased to $0.14, with a market cap of approximately $21 billion.
Active Wallets: The number of daily active addresses hit over 67,500, marking significant trader engagement.
Support Levels: Dogecoin's price is being supported around the $0.138–$0.14 range.
Resistance and Future Expectations: Traders are eyeing $0.16 as a key resistance level, with the potential for a price breakthrough.
Market Sentiment: Increased trading volume indicates growing buyer interest, set against uncertainty from upcoming Federal Reserve meetings.

Dogecoin

Surge in Daily Active Wallets

Recent data from BitInfoCharts reveals a dramatic rise in daily active addresses on the Dogecoin network, reaching over 67,500 on December 3. This figure represents the second-highest level recorded in three months. A similar surge occurred on September 15 when DOGE was nearing a local peak of about $0.30. The current rise in wallet activity is particularly noteworthy as prices are once again testing familiar price zones following a prolonged decline.

Daily Active Addresses

Stability Around $0.14

Dogecoin seems to be maintaining a foothold above a crucial price level of $0.138–$0.14, which has seen multiple retests. Observations indicate that the token has rebounded from this level before, and trading volume has more than doubled during this recent upswing, signaling increased buying interest.

Market analytics show conflicting short-term trends: some sources report a 5% decrease over the past week, while others highlight a more significant drop of about 7.5%. Such inconsistencies reflect the varied interpretations of the data. Over the longer term, however, Dogecoin remains approximately 60% lower than it was a year ago and about 50% off its recent highs.

Dogecoin Price Trends
Source: BitinfoCharts

Traders are closely monitoring the $0.16 mark as the next critical resistance level. Reports indicate that a decisive break above this threshold could signal the end of the current short-term downward trend. Additionally, the 200-day exponential moving average is another important benchmark that traders watch for indications of a shift in medium-term momentum.

Should Dogecoin break above the 200-day EMA, many traders would interpret this as a sign that a recovery may be underway. However, past trends indicate that such signals can sometimes reverse quickly.

Spikes in daily active addresses often point to heightened interest; however, they can also result from simple transactions, automated trading, or major holders reorganizing their assets. While increased trading volume strengthens the argument for buyer interest, active address metrics alone are not a definitive indicator of future price movements.

DOGE Chart
DOGEUSD currently trading at $0.13. Chart: TradingView

The current market landscape appears to be a battleground, with both buyers and sellers more engaged than in previous weeks. This heightened activity makes the upcoming days crucial for traders who focus on short-term price movements.

Additionally, the upcoming Federal Reserve meeting adds an extra layer of uncertainty in the market. Traders are eagerly awaiting comments for indications of potential rate cuts, which could positively impact risk assets, including cryptocurrencies. Adjustments in rate policies are likely to influence the overall market significantly more than any individual on-chain metric for a specific cryptocurrency.

Featured image from Unsplash; chart from TradingView