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A recent on-chain data analysis from IntoTheBlock highlights the current state of the Dogecoin network and the factors that could drive future growth.
Notably, a significant amount of Dogecoin holders are in profit, which is noteworthy for the dog-themed crypto asset.
According to IntoTheBlock, with 68% of Dogecoin wallets still in profit, the dog coin is showing resilience and currently ranks 4th among assets with a market cap of over $1 billion. Howbeit, the Dogecoin network needs a catalyst to drive further growth.
Citing on-chain data, IntoTheBlock observed that the number of new Dogecoin addresses has been gradually decreasing, indicating a lack of new participants joining the network. Similarly, the number of transactions has been mixed over the past three months. While there were a few notable spikes, they were short-lived.
Interestingly, the Dogecoin network is significantly more active in Western time zones, suggesting that the APAC region presents a potential growth opportunity.
Tomiwabold OlajideAn important nuance to consider regarding the lower transaction volume is the loyalty of holders, with an average holding time of 2.3 years. This implies that participants may not be actively using the network, but they are certainly not selling. It is worth noting that 67% of all DOGE holders have had their assets for over a year.
Dogecoin to $1?
Dogecoin's journey to $1 is filled with potential, but the road is far from being smooth. For the time being, the market remains optimistic, watching closely for the next big catalyst that could propel Dogecoin to new highs.
In the very short term, Dogecoin price action might be worth paying attention to. At the time of writing, Dogecoin was up 1.12% in the last 24 hours to $0.10, a rally to $1 would imply a 900% increase from current levels.
After 10 consecutive days of falls, Dogecoin began to recover from the $0.08 support, but bulls are battling to drive and sustain the price above $0.10.
If bulls fail in their bid, Dogecoin faces the likelihood of a drop to $0.08. A drop below this key support might trigger further falls to $0.06.
On the other hand, if the price increases above $0.10, it could indicate that selling pressure is easing. If this occurs, Dogecoin may rise to $0.12, which is expected to operate as a strong barrier, and possibly $0.14.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov