Summary:
24-hour large transaction volume increased by 41% to $23.35 billion
Daily active addresses grew by 35% to 157,190
After a recent rebound, the price corrected from around $0.42 to $0.37
Social media interest remains below the peak levels of 2021
Technical analysis indicates a potential breakout pattern is forming
Dogecoin is a popular meme-based cryptocurrency, and as its price adjusts, on-chain activity shows strong growth, indicating complex market signals. The price of cryptocurrency has retreated from recent highs, but network indicators suggest continued interest from large traders and ordinary users.
Dogecoin's price has retreated from a recent peak of $0.42, which was the highest level since the 2021 bull market. The digital asset is currently trading at $0.37, having adjusted down to a low of $0.343 over the weekend, representing a 19.55% decline from recent highs.
Dogecoin
Dogecoin Price
Despite the price correction, on-chain data shows a significant increase in network activity. According to data from the analysis platform IntoTheBlock, large transaction volumes on the Dogecoin blockchain reached $23.35 billion within 24 hours, a 41.12% increase from the previous day. These large transactions are typically defined as transfers exceeding $100,000 and often indicate the activity of institutional investors or wealthy individual traders (often referred to as 'whales').
The significant increase in activity is not limited to large traders. The number of daily active addresses on the Dogecoin network has also seen a substantial increase, growing by 34.91% to 157,190 addresses. This metric indicates broader participation across the network, including small traders and ordinary users.
Technical analysts have identified potential patterns that could signal future price movements. Since DOGE peaked on November 14, a descending wedge pattern has formed, and some analysts believe that breaking this pattern could lead to another rally, potentially pushing prices toward $0.47.
The recent price movements have also created what some traders believe to be a bullish flag pattern within a shorter timeframe. This technical pattern typically precedes a sustained upward momentum, and some analysts point out that if this pattern plays out as expected, the potential target could be above $0.80.
Social media sentiment has historically been a key driver of Dogecoin's price movements, but current interest levels are lower compared to the peak of the 2021 bull market. However, some market observers believe this might indicate room for growth rather than a warning signal.
The recent popularity of this cryptocurrency has been influenced by various factors, including discussions surrounding the U.S. presidential elections, mentions by Elon Musk, and humorous references to the Department of Efficiency (DOGE).
In the recent price adjustment, profit-taking seems to be a major factor as traders who participated in the recent rally chose to secure gains. This selling pressure has led to prices dropping below $0.40.
Whale activity during this period is notable, but the direction of these large transactions—whether accumulation or distribution—remains unclear. The increase in trading volume may indicate selling pressure or strategic positioning by major shareholders.
The network has maintained strong technical performance throughout market trends, processing an increasing number of transactions without reported issues. This stability suggests that if trading volume continues to grow, the infrastructure can handle higher levels of activity.
Market observers note that Dogecoin's price movements often follow different patterns of social interest and momentum. Despite the price weakness, the current phase shows strong foundational network indicators, creating an interesting dynamic worth monitoring for traders and analysts.
Price support is forming around $0.34, with buyers showing interest during the recent downturn. Resistance remains around $0.40, which has become a key psychological barrier for traders.
The combination of increased network activity and price adjustments has resulted in a complex market situation that is difficult to explain simply. While some indicators suggest growing interest in cryptocurrency, the price movements indicate cautious trading behavior.
Trading volume on major exchanges remains stable, indicating that market participation continues despite price adjustments. This ongoing trading activity suggests that market participants are still engaged with the asset.
Current market data shows prices hovering around $0.37, recovering about 7.6% from recent lows. The next major technical hurdle for Dogecoin appears to be reclaiming the $0.40 level, which could determine the short-term direction of the asset.
