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Dogecoin is showing signs of a bullish trend, according to recent on-chain metrics and market indicators.
First, the summary gauge in the metrics snapshot points to "Mostly Bullish" sentiment on IntoTheBlock's main page, with four indicators in the neutral zone and two indicating bullish trends. This overall sentiment is supported by specific on-chain and exchange signals that reflect the underlying strength and market dynamics of Dogecoin.
Net network growth: Sitting in the neutral zone with a slight increase of 0.14%, this metric indicates that the number of new addresses joining the network is stable. This stability is crucial for maintaining network health and potential growth.
In the money: Another neutral signal is at 0.49%, suggesting that a significant portion of addresses are at or near profitability, which can influence holding patterns among investors.
Concentration: The minimal concentration change of 0.03% reflects a decentralized spread of DOGE holdings, reducing the risk of price manipulation by large holders.
Large transactions: A slight decrease of -3.91% in large transactions could suggest less immediate institutional or whale activity, aligning with more stable, organic market movements.
Yuri MolchanBid-ask volume imbalance: At 0.57% bullish, this suggests a slight dominance of buy orders over sell orders, which can be a precursor to a price increase if the trend continues.
The trading chart for Dogecoin further validates these indicators. Currently, DOGE is seeing support around the $0.1444 level, with a resistance near $0.1600. The price movement within this range alongside a gentle uptick in trading volume points to sustained interest and potential for upward movement.
Overall, the on-chain situation for Dogecoin is slightly tilted in favor of bulls. However, we might see a drastic change of the situation in the foreseeable future if the market sees a wave of new liquidity.
Alex Dovbnya
