Dormant Dogecoin tokens have recently surged back into the market.
The price of Memecoin is still in a consolidation phase.
After a surge in early November, DOGE's price is now stabilizing around $0.40. Recent data shows that on-chain activity is increasing, previously dormant tokens are starting to circulate, and trading volume is also rising.
Although DOGE is currently showing some hesitation, we still need to pay attention to key support and resistance levels based on the long-term holding peaks and price trends.
Dormant Dogecoin tokens are returning to the market.
A notable trend is the surge in Dogecoin’s 'age used' metric, which tracks the movement of long-dormant tokens. According to Santiment's charts, there were significant spikes at the end of October, mid-November, and December.
Specifically, on December 16, this metric surged to 1 trillion, the highest point since October.
These fluctuations are usually synchronized with key price changes, indicating potential profit-taking, or large whale investors adjusting their positions. When these dormant tokens re-enter the market, it typically signifies that long-term holders are becoming active or that the market may face some selling pressure.
The largest fluctuation coincides with Dogecoin's initial price surge, which further highlights the close relationship between on-chain activity and the rise of DOGE.
Trading volume indicates that market activity is increasing.
From the trading volume chart, this trend is further validated. Trading volume began to rise sharply in late October, peaking in mid-November, which aligns very well with the timing of Dogecoin's price increase.
Analysis shows that trading volume on December 16 also saw a slight increase, breaking through 5.5 billion, further indicating that market activity is on the rise.
The increase in trading activity reflects strong market interest and liquidity for DOGE. However, entering December, trading volume has slightly decreased, which is consistent with DOGE's price oscillating around $0.40.
This cooling phase indicates that market sentiment is tending towards neutrality, and investors seem to be waiting for a clear breakout signal.
Dogecoin's price is supported in a neutral RSI.
From the price and RSI charts, Dogecoin is currently consolidating above the 50-day moving average (MA) at $0.34, indicating sustained bullish support. Meanwhile, the relative strength index (RSI) is at 51.32, showing that the market is in a neutral state, neither overbought nor oversold, meaning there is no clear buy or sell signal in the short term.
If DOGE can successfully hold this key support level and trading volume recovers, the price may break through to $0.45. However, if it falls below the 50-day moving average, bullish momentum may weaken, and the price may pull back to around $0.30.
Dogecoin's on-chain activity and price trends suggest that it is currently in a crucial consolidation phase. Despite the surge in consumer age and trading volume indicating significant whale activity, Dogecoin's current neutral RSI also suggests that market sentiment remains balanced.
