Key on-chain metrics for Dogecoin have increased significantly, indicating that despite price consolidation, trading activity is still rising. Over the past week, the average transaction size has surged, reaching a 7-day high of $33,411 on November 12, 2024, while continuing to hover around a 7-day average of about $11,960.
This sharp increase indicates that the network is being dominated by larger exchanges, which may be a sign of increased interest from institutional investors or whale activity. Dogecoin's volatility has also significantly increased, reaching a peak of 147% on the 30-day chart.
This indicates high price volatility, usually preceding significant market fluctuations. In the past, before Dogecoin's volatility increased, there were either significant pullbacks or strong rebounds. A key phase can be observed from the Dogecoin price chart. Dogecoin saw a substantial rise in November and is currently trading at around $0.40. After encountering resistance near $0.48, the asset then consolidated within a downward channel.
The 50-day EMA and $0.35 are significant support levels. If Dogecoin cannot maintain this level, it may drop to the 200-day EMA at $0.21. If Dogecoin breaks the downward resistance trend line, there is a chance to regain bullish momentum. Traders should closely monitor the $0.42 to $0.45 range for signs of recovery.
After successfully breaking through $50, there is potential for a rebound towards the psychologically significant $0.50 level. The Dogecoin market is heating up, with increasing volatility and expanding trading volume as clear evidence. However, there are some issues due to the asset's insufficient trading volume and inability to maintain previous highs.
Any large inflows above the current level may indicate the start of a new round of rebounds. The main factor determining whether DOGE can reach previous highs will be the condition of the larger cryptocurrency market.
