DOGE addresses and its velocity increased sharply in the recent past.  Analysis revealed that the memecoin was testing a crucial resistance. 

Dogecoin [DOGE] has achieved a remarkable milestone in the recent past related to its network usage. This milestone clearly reflected a rise in adoption. While that happened, the memecoin’s price also gained bullish momentum.  Dogecoin’s network activity on FIRE! Ali, a popular crypto analyst, recently posted a tweet revealing an interesting development. As per the tweet, addresses recently surged to 133,880. This was a major development, as the number was the highest level in eight months. In fact, AMBCrypto’s analysis of Santiment’s data also revealed a similar scenario. We found that DOGE’s velocity increased last month, meaning that DOGE was used more often in transactions within a set timeframe.

To back that, the memecoin’s transaction count also followed a similar increasing route last month. All of these developments indicated a rise in DOGE usage. 

Source: Santiment

How is DOGE doing? As per CoinMarketCap, DOGE’s weekly and daily charts remained green. At press time, DOGE was trading at $0.1115. Notably, AMBCrypto reported earlier that the world’s largest memecoin was in a consolidation phase. Therefore, AMBCrypto planned to dig deeper again to find out whether things could change in the coming days. Our analysis revealed that whales were actively trading the memecoin. This was evident from the stable number of whale transaction counts throughout the last week. Moreover, Dogecoin’s MVRV ratio also increased. At press time, the metric had a value of 1.2%. Though the figure was not up to the mark, the improvement in it suggested a change in market trend. Nonetheless, DOGE’s Weighted Sentiment declined in the last few days, indicating that bearish sentiment around an asset is increasing. 

Source: Santiment

Additionally, we also found that at the time of writing, Dogecoin’s Fear and Greed Index was in the “greed” phase. Generally, when the index hits this level, it indicates an upcoming price drop.

Read Dogecoin’s [DOGE] Price Prediction 2024–2025  

According to our analysis, DOGE was testing a crucial resistance at press time. A successful breakout could result in Dogecoin moving once again towards $0.13.  However, if the bears take control of the market, then the memecoin might witness a correction, in turn, plummeting to $0.10. A drop under that mark could push Dogecoin further down to $0.094 in the coming weeks. 

Source: TradingView

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