Analyzing Dogecoin’s Market Dynamics: On-Chain Data and Price Predictions Amidst Recent Decline
Crypto News – Dogecoin (DOGE), after reaching a three-month high of $0.082 last week, has experienced a noticeable dip, with its price descending towards $0.074, marking a 10% decrease. This recent fluctuation in Dogecoin’s value has sparked interest in how traders are responding to this downturn.
Currently, Dogecoin’s valuation is at a critical juncture, with bullish investors actively defending the $0.70 support level. There’s growing speculation about whether the increased network activity and market demand will fuel a swift recovery in Dogecoin’s price.
Despite the recent price consolidation, trading activity for Dogecoin remains robust. After struggling to surpass the $0.08 resistance level, Dogecoin entered a phase of consolidation. Yet, this correction in Dogecoin’s price hasn’t adversely affected its trading activity. According to IntoTheBlock data, daily transactions on the Dogecoin network have stayed relatively high during this period of price decline.
On November 8, the transaction count for DOGE hit a three-month high of 307,810. Notably, even amidst the price drop, Dogecoin has consistently seen over 100,000 confirmed transactions daily for the past 10 days—a level of activity only achieved once in the prior 60 days.
The daily transaction count is a crucial metric, representing the number and volume of on-chain transactions within a specific timeframe. An uptick in transaction count, even as prices fall, suggests that the cryptocurrency continues to see sustained demand.
If this trend continues, it’s likely only a matter of time before Dogecoin breaks out of its current consolidation phase, as indicated by the chart above, showing that DOGE remains highly sought after by bullish traders.
In the Dogecoin spot markets, bulls appear to be maintaining control, as evidenced by the aggregate exchange order books. Analysis of trading data from 14 crypto exchanges reveals that bullish traders have placed orders for 758.5 million DOGE, surpassing the 710 million DOGE sell orders from bears. This trend in the exchange order books, which shows the price distribution of total buy and sell orders across various exchanges, indicates a current market demand that exceeds supply by nearly 48.5 million DOGE. This suggests that many bullish traders are looking to buy the dip, potentially driving up prices to expedite order fulfillment.
In summary, Dogecoin’s increasing network activity is likely to further amplify market demand. Should this hypothesis hold true, Dogecoin investors can expect a price rebound in the near future.
For Dogecoin’s price prediction, further consolidation seems probable before a potential rally towards $0.1. This forecast is supported by Global In/Out of the Money (GIOM) data, which categorizes current DOGE holders based on their entry prices.
This data reveals a strong buy wall erected by the bulls around the $0.07 mark. Specifically, 385,090 holders have acquired 52.3 billion DOGE at an average price of $0.07. If these investors continue to hold, they could catalyze a prompt rebound in Dogecoin’s price, as anticipated.
However, if bears manage to breach this buy wall, Dogecoin’s price might fall towards $0.06. Conversely, if Dogecoin’s price climbs to $0.1, the 266,430 holders who bought 18.01 billion DOGE at a minimum price of $0.081 could establish a resistance sell wall. Should this resistance be overcome, a rally towards $0.1 for Dogecoin seems likely.