Dogecoin [DOGE] has reached a notable milestone recently regarding the usage of its network.
This milestone clearly reflects an increase in adoption. As it happens, the price of memecoin also gains strong momentum.
Dogecoin Network Activity Is On Fire!
Ali, a popular cryptocurrency analyst, recently posted a tweet revealing an interesting development.
According to the tweet, the number of addresses has jumped to 133,880. This is a big development, as it is the highest level in the past eight months.
Indeed, TinTucBitcoin's analysis of data from Santiment paints a similar picture.
We found that DOGE velocity has increased over the last month, meaning DOGE is being used more frequently in transactions within a given time frame.
To further prove it, memecoin's transaction volume has also followed a similar growth path over the past month.
All of these developments indicate an increase in DOGE usage.
Source: Santiment
Where does Dogecoin stand?
According to CoinMarketCap, DOGE’s weekly and daily charts remain in the green. At press time, memecoin is trading at $0.1115.
Notably, TinTucBitcoin previously reported that the world's largest memecoin is in a consolidation phase.
Therefore, TinTucBitcoin has planned to dig deeper to see if the situation changes in the coming days.
Our analysis shows that whales are actively trading memecoin. This is evident from the steady number of whale transactions over the past week. Furthermore, memecoin’s MVRV has also increased.
At the time of reporting, the index was at 1.2%. While the figure fell short of expectations, the improvement suggested a change in market trends.
However, DOGE’s weighted sentiment has declined over the past few days, indicating that pessimism around the asset is growing.
Source: Santiment
Additionally, we also noticed that at the time of writing, Dogecoin's Fear and Greed Index is in the “greed” phase.
Typically, when this indicator reaches this level, it signals an upcoming price decline.
According to our analysis, DOGE is testing a key resistance at the time of writing. A successful breakout could send Dogecoin once again towards the $0.13 level.
However, if sellers take over the market, memecoin could undergo a correction, leading to a drop to $0.10.
A drop below that level could push Dogecoin further down to $0.094 in the coming weeks.
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