Dogecoin has also seen a surge in the number of transactions, with 1.93 million transactions in the last week alone. This marks the highest weekly transaction count since early July, indicating that more and more people are actively engaging with the $DOGE network.
Although the number is still below the level that was registered in February, the growth signal may be indicative of a possible bullish trend for the cryptocurrency.
Levels to Consider for Dogecoin
Dogecoin price has not been spared through 2024 and has been on a downward trend, even penetrating major support levels. However, the price has fallen below $0.010 in recent days. Particularly in September as it has been struggling to cope with the bearish sentiments.
But as Crypto Daan has recently noticed, Dogecoin is reclaiming the position above the downward trend line, indicating a potential trend reversal. To sustain an uptrend, the Dogecoin price must not drop below $0.105 and has to break the resistance at $0.12.
If these conditions are met, analysts say that the meme coin has the potential to rise sharply. However, the levels at $009 may not hold if these levels are not maintained and this could result in a retest of the former supports.
Bullish Quarter Outlook With Positive Sentiment
Dogecoin has always had bullish trends in October with an average return rate of about 859%, as seen from CryptoRank. If these trends persist, Dogecoin may soar past $0.12. Pushing it further to the top as the market may be heading to another bull run.
Investors are keen on observing the $011 level. It is a potential resistance point at which 23,400 addresses contain about 31 billion DOGE. A move above this level will be material considering the amount of trades that have been made at this price.
It could result in higher buying pressure. And may very well drive Dogecoin towards the next resistance levels of $0.012 and $0.013. On-chain data also gives a positive outlook for DOGE price surge as 71% of the holders are in profit.
On-chain activity and Whale Interest Boost Dogecoin’s Prospects
Metrics from on-chain data paint a largely positive picture of Dogecoin. Meaning that a bullish breakthrough could be on the horizon. Data shows that large transactions have increased by 3.05% in the last few days.
That indicates whales are still involved in Dogecoin and its possibilities. Though there has been a marginal drop in the level of large transactions, the concentration of significant shareholders remains at 62%, showing that the big investors have not lost confidence.
The situation of Dogecoin shows that it is near the fifty-day moving average. The exchange flows indicate a bullish market. If the price breaks above $0.11, we can expect a large price increase. Following this logic, the breach of this level may lead to increased interest and buying pressure.
On the other hand, if the price fails to break through this level, the price may consolidate or even retreat to the lower support level. The price of Dogecoin is still well important as it attempts to find support near $0.10 after recently breaking out of a macro Bearish trendline.
In case the cryptocurrency manages to stay above this level, it may signal the onset of a new macro bull market. But they have not been able to hold these levels, hence further downside may be expected.
Some of the indicators like the Relative Strength Index (RSI) are currently neutral. The Bollinger Bands suggest that trading is slightly ranged. These technical indications make it possible to state that the fate of Dogecoin’s price in the next few days will depend on the further development of events.
