Dogecoin (DOGE) DAU up 28%, Will Price Reverse Course?

Fri, 07/28/2023 - 16:20
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Most altcoins, including Dogecoin (DOGE), have been in a major freefall as the top tokens pare off the losses they have accrued in the past week. Dogecoin is changing hands at a price of $0.07705, down 2.49% over the past 24 hours with about a 2.75% gain in the trailing seven-day period.

Dogecoin (DOGE) Whales Are Cashing Out Following 30% Price Surge

While the price action of Dogecoin remains bearish in tandem with the broader market momentum, there are aspects of the digital currency with positive metrics that may help revive the protocol in the near term. According to data from crypto analytics platform IntoTheBlock (ITB), the total number of Daily Active Users (DAUs) is up by 28.63% to 66.42K.

Dogecoin DAU Chart. Source: IntoTheBlock

This figure is proof that there is very robust activity on Dogecoin as retail interest is generally positive at this time. Cryptocurrencies record a surge in price when there is net positive buying action, which could encompass both retail and institutional buyers. Dogecoin investors cutting across both spectrums are active at this time, riding on the deep liquidity surrounding the premier meme coin.

With the generally positive sentiment on Dogecoin at this time, there is a possibility that the price of the asset may reverse course from its bearish trend in the near term.

Dogecoin growth boosters

Unlike most digital currencies with defined use cases that drive their growth, Dogecoin is different in that its use as a payment token is limited when compared to Bitcoin (BTC) or Litecoin (LTC). However, Dogecoin is a token that has generated one of the most active communities in the Web3.0 ecosystem, with Elon Musk appropriately helping to stoke the trend.

Dogecoin Gains Traction, Whales Hold Billions of DOGE at These Levels: Analyst

Dogecoin is a high flier that typically responds swiftly to impressive tweets from Elon Musk and other general market triggers. In the near term, we can expect resistance in its current freefall based on the confluence of its broader growth boosters.