- Dogecoin’s bullish momentum continues with prices above the 9-day SMA, signaling further potential gains.
- Despite the bullish trends, the decrease in whale transactions and active addresses showed the need for higher user engagement.
Dogecoin [DOGE] DOGE price was trading at $0.125656 at the time of writing, reflecting a 2.73% increase in the last 24 hours. DOGE’s 24-hour trading volume was $812,310,432, indicating strong market activity.
Meanwhile, Dogecoin sits at #9 on CoinMarketCap, with a market cap at press time of $18,239,143,710, per CoinMarketcap.
Despite these positive numbers, Dogecoin has struggled to break above $0.2 this year. The market remains volatile, with the potential for substantial profits and losses.
Does DOGE follow historical patterns?
Dogecoin’s current price trends are closely related to its halving cycles. According to historical data, after each halving event, DOGE has seen significant upward price movements.
For example, in early 2017 and late 2020, the price skyrocketed after periods of consolidation and descending trendline breakouts.
Analyst MikybullCrypto suggested that a similar pattern could form, with a potential breakout projected around the next halving cycle.
Source: X
MikybullCrypto tweeted,
“A post-halving rally wave is brewing. Get ready!”
Technical analysis
At press time, DOGE has broken above the 9-day simple moving average (SMA), indicating short-term bullish momentum. This follows a period of consolidation around the $0.100000 mark in late June.
The Moving Average Convergence Divergence (MACD) indicator confirmed this forecast. The MACD line crossed above the signal line, forming a bullish crossover.
The histogram was in positive territory at the time of writing, suggesting that buying pressure was strengthening.
Source: TradingView
At press time, the Relative Strength Index (RSI) was at 55.52, above the neutral level of 50 but still below the overbought level of 70.
This indicates moderate bullish momentum with no risk of an immediate pullback due to overbought conditions.
The RSI trend suggests increasing buying interest, which could lead to further price increases if sustained.
Decline in whale activity
Despite the recent bullish sentiment, there has been a decline in DOGE Whale activity and user engagement.
Whale transactions, defined as transactions greater than $100,000, decreased to 49 significant transactions (at press time). This reduction is in line with the overall decrease in network activity.
Active addresses also decreased to 42.1k at press time, and the number of transactions fell to 127k, showing a decline in user engagement and network activity.
Source: Santiment
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Dogecoin’s recent performance and technical indicators suggest potential for further upward movement.
However, the decline in active addresses and whale activity highlighted the need for increased user engagement to maintain the bullish trend.