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Dogecoin (DOGE) has recorded a significant spike in network activity despite ongoing volatility in price. According to IntoTheBlock data, 157,190 addresses have been active in the last 24 hours. This development suggests increased interest from investors in the cryptocurrency market backing the meme coin.
Dogecoin network activity surges by 34.91% amid price dip
Notably, this reflects an uptick of 34.91% in activities within the Dogecoin ecosystem. This growth in network activity amid a market-wide price decline suggests that investors are involved in massive accumulation. Such development occurs when market participants anticipate a potential price breakout.
As of press time, the Dogecoin price was exchanging hands at $0.1996, reflecting a 2.19% decline in the last 24 hours. Within this period, the meme coin has breached the $0.20 support level up to three times and rebounded amid the ongoing volatility.
Interestingly, Dogecoin whales have increased their accumulations by over 1.1 billion DOGE within the last 48 hours. Some consider the massive spike in acquisition under current bearish conditions risky.
These argue that the liquidation triggered in the ecosystem has outstripped the demand of whales, leading to sell pressure.
However, with the number of addresses currently active, market observers will look to see if the buying and selling could trigger a reversal.
Can Dogecoin reclaim $0.20 support zone?
It is likely that DOGE could reclaim the $0.20 resistance zone amid increased network growth. However, if it fails, the meme coin’s next support lies at $0.191. As of press time, trading volume has dipped by 17.91% to $1.45 billion. An uptick in the short term might support a price rebound.
Dogecoin large holders could still step in to mop up the excess volume of DOGE circulating in a move to stabilize the price. Already, over one billion DOGE have been purchased by these large holder investors when the price dropped to $0.194.
It remains to be seen if they would act once more, now that the meme coin’s price has breached the $0.20 support level.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team