Dogecoin: On-chain metrics suggest strong DOGE price rally

Recently, the price of Dogecoin saw a rally near the $0.19 zone, now DOGE is enjoying renewed fervor from investors, signaling growth potential that cannot be ignored. Dogecoin’s on-chain metrics in particular have seen a significant increase, suggesting that the uptrend is just beginning.

Standing out among the metrics are transaction count, whale transaction volume, and consumed age of DOGE tokens. According to Santiment data, a more than 700% increase in transaction count was observed, jumping from 1.22 billion to 9.2 billion in just two days. This notable increase coincided with the recovery in Dogecoin’s price, highlighting a strong correlation between these factors.

Whale transactions involving the transfer of DOGE tokens have also seen a significant increase. From around 1,500 daily transactions at the beginning of March, that number skyrocketed to more than 4,000 by the end of the month, signaling growing interest from large investors in the currency.

Another metric that deserves attention is ‘Consumed Age’, indicating the period that DOGE tokens are held by investors. Increases in this metric suggest that more holders are choosing to hold their coins in anticipation of future appreciation rather than selling them.

Dogecoin Price (DOGE)

At the time of publication, the price of DOGE was quoted at US$0.1878 with an increase of 4% in the last 24 hours.

Despite recent strength, Dogecoin faces significant resistance from bears in the market, with a key holding point at $0.20. This level has been a challenge for the currency since the beginning of March. However, with the coin holding above its 50-day moving average, the trend indicates an inclination towards buying in the near term.

After a sharp decline, DOGE price found support near $0.1220. The hourly chart clearly suggests that the bulls have defended the support zone on many occasions. Now DOGE has started a steady recovery wave above the $0.1850 level. The price now faces resistance near the $0.1950 zone. The next major resistance is near $0.21 and $0.24 above which the price may revisit the $0.28 zone.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.