Dogecoin Sees Surge In Transactions: Is a Massive Breakout on the Horizon?

Samuel Edyme

8 months ago

3 mins read

Dogecoin Sees Surge In Transactions: Is a Massive Breakout on the Horizon?

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Amid the sluggish price performance, Dogecoin is now seeing a rise in one of its major metrics. Recently, data from the market intelligence platform IntoTheBlock revealed that the asset has recently exhibited a surge in transaction activity.

For context, a rise in a crypto asset’s transaction activity typically indicates increased use and interest in that asset. In the case of Dogecoin, this can suggest higher demand, more user engagement, or growing adoption for DOGE.

This heightened activity sometimes precedes major price movements, signaling potential market sentiment or liquidity changes.

How High Is Dogecoin Transaction Rising?

According to IntoTheBlock, Dogecoin processed 1.93 million transactions last week alone. This figure marks the highest weekly transaction count since early July, suggesting renewed interest and activity within the Dogecoin network.

Dogecoin rising transaction activity. — Dogecoin is raising transaction activity. | Source: IntoTheBlock

Although this rise in transaction activity is still below the peak observed in February, it indicates a positive trend that could potentially impact Dogecoin’s market performance. IntoTheBlock noted, “This uptick is a promising sign for the DOGE network.”

So far, this increased transaction activity seems to have already translated into a positive price movement for the asset. Dogecoin has seen a 2.3% increase in the past day, reaching a trading price of $0.1015.

Dogecoin (DOGE) price chart on TradingView — DOGE price is moving sideways on the 2-hour chart. Source: DOGE/USDT on TradingView.com

This is a notable rebound compared to its price earlier this month when DOGE was trading at $0.09. Interestingly, while the rise in price performance has also boosted DOGE’s market cap, currently at $14.8 billion, the same can’t be said for the asset’s daily trading volume.

Despite the price increase, DOGE’s daily trading volume has seen an opposite trend in recent days, plunging from more than $700 million last week to below $500 million.

Regardless, the rise in transaction activity and price suggests a possible shift in market sentiment toward Dogecoin. This renewed activity could signal a resurgence in market interest, possibly laying the groundwork for further price gains shortly.

Key Resistance Level to Watch

Despite the ongoing positive indicators, Dogecoin faces a crucial test ahead. Prominent crypto analyst Ali recently highlighted in a post on X a key resistance level at $0.11 for Dogecoin, where approximately 23,400 addresses are holding around 31 billion DOGE.

Dogecoin in/out of the money around price. | Source: Ali on X

This level is significant as it represents a considerable concentration of holders who could potentially impact the asset’s price movement.

According to Ali’s post, should Dogecoin break through this resistance, it could open the door for further upward momentum. However, if it fails to breach this level, it may indicate a period of consolidation or even a possible pullback.

If you’re anticipating a #Dogecoin breakout, keep in mind the key resistance level at $0.11, where 23,400 addresses are holding ~31 billion $DOGE! pic.twitter.com/iAP28te0bl

— Ali (@ali_charts) September 16, 2024

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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