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Key on-chain metrics for Dogecoin have significantly increased, indicating increased activity in spite of price consolidation. Over the past week, the average transaction size has increased dramatically, reaching a seven-day high of $33,411 on Nov. 12, 2024, while continuing to hover around a seven-day average of $11,960.
This dramatic increase suggests that the network is being dominated by larger transactions, which may be a sign of increased institutional investor or whale activity interest. Dogecoin's volatility has also significantly increased in tandem, peaking at 147% on the 30-day chart.
This is indicative of high price volatility, which frequently precedes acute market movements. In the past, either significant pullbacks or powerful rallies have preceded periods of elevated DOGE volatility. A critical phase can be seen on the market side of the DOGE price chart. Dogecoin had a significant upswing in November and is now trading at about $0.40. The asset has since consolidated within a descending channel after encountering resistance close to $0.48.
The 50-day EMA and $0.35 are both clear support levels. A decline toward the 200-day EMA at $0.21 might happen if DOGE is unable to maintain this level. Dogecoin has an opportunity to recover its upward momentum on the bullish side if it breaks above the trendline of descending resistance. Traders should keep a close eye on the $0.42 to $0.45 range for indications of a recovery.
Arman ShirinyanThere is a chance that a rally toward the psychologically significant $0.50 level could be initiated by a successful breakout above $50. The market is heating up for Dogecoin, as evidenced by growing volatility and larger transaction sizes. But there are issues given the asset's lack of volume and inability to maintain its previous highs.
Any sizable volume inflow above current levels may be a sign of the start of a fresh rally. A major factor in determining whether DOGE can reach its previous highs will be the state of the larger cryptocurrency market.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Alex Dovbnya
Dan Burgin
Vladislav Sopov