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Dogecoin (DOGE), a dog-themed cryptocurrency, is in the spotlight as its network activity experiences growth. According to on-chain data from Santiment shared by crypto analyst Ali, active addresses on the Dogecoin network skyrocketed by 400%, reaching nearly 395,000.
In an analysis published by Santiment on March 14, the on-chain analytics platform noted that while cryptocurrencies remain suppressed, some altcoins are showing emerging spikes in on-chain and social activity. Ideally, during a marketwide price downturn, abrupt rises in whale transactions (showing their accumulation) or network growth (indicating imminent on-chain transaction increases) are common. However, this may not entirely be the case.
That said, while some crypto assets are booming in network utility, whale activity and social discussions amid the eight-week downturn on the market, some are drying up. Recent weeks have seen lackluster price action across the market; thus, it is no surprise to see speculative-driven assets, in particular, seeing some of their "coldest" (lowest network activity) days of the year at the moment.
On the contrary, Dogecoin is showing an increase in on-chain activity, with Santiment naming it the "top address activity riser" in the market downturn.
The spike in active addresses signals a significant increase in user activity and engagement within the Dogecoin ecosystem, which remains a positive indication in the long run.
Dogecoin price action
At the time of writing, DOGE was up 2.89% in the last 24 hours to $0.1738, defying expectations of a death cross that appeared on its daily chart on March 14.
Dogecoin bounced off the $0.14 support on March 11 and has marked three out of the last four days in the green.
The relief rally is expected to confront selling at 0.19. The first indication of strength will be a break and close above this level. It might pave the way for a rally to the daily simple moving averages of 50 and 200 at $0.242 and $0.248, respectively. Sellers will try to block the uptrend here, but if the bulls break through the resistance, Dogecoin might rise to $0.29.
On the other hand, if the DOGE price falls from its current levels, it enhances the likelihood of a breach below $0.14. Dogecoin might then drop to $0.10.
U.Today Editorial Team
Dan Burgin
