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Dogecoin Crosses 1.3 Million Transactions Again —Can DOGE Price Hit $0.2 This Time?

By:
Ibrahim Ajibade

Dogecoin on-chain analysis examines how the rapid increase in DOGE Network Transactions this week could drive the bullish price action toward $0.2.

Dogecoin price analyis

In this article:

 Price Insights: 

  • Dogecoin (DOGE) price continues to lurk around the $0.09 area as the bulls look to force another leg-up. 
  • Daily Transactions on the Dogecoin network returned to an upward trajectory after a mild decline in the last week of November. 
  • Technical analysis indicators show the key resistance and potential support levels that could impact the ongoing Dogecoin price rally as the bulls gun for the $0.2 territory. 

Dogecoin (DOGE) price is currently hovering around the $0.09 area as of Dec. 4 while the overall crypto market continues to experience bullish tailwinds. On-chain analysis examines how the rapid increase in DOGE Network Transactions this week could impact the bullish price action. 

Dogecoin Daily Transactions Have Crossed $1.3 Million Again 

Dogecoin continues to lead the mega-cap memecoin sector in terms of month-on-month price performance for Q4 2023. The rapid increase in daily transactions involving DOGE has been identified as one of the major drivers behind the latest price bounce, according to on-chain data tracker IntoTheBlock.

Fears of an impending price correction arose, when the DOGE transactions sharply reduced from 1.7 million to 525,830 between Nov 28 and Dec 2. But, incidentally, the crypto market rally has significant buoyed Dogecoin network activity this week. 

Since hitting a two-week low of 525,830 on Dec 2, DOGE Transactions has now increased nearly 300% as it crossed 1.46 million mark on Dec 4.

While a lot of these transactions have been attributed to the Dogecoin Ordinals (DRC-20) wave, the uptick in network activity has actually seen DOGE price jump 7% from $0.084 to $0.09 during that period.

Dogecoin (DOGE) Derivatives Trade Volumes | Source: IntoTheBlock
Dogecoin (DOGE) Daily Transactions | Source: IntoTheBlock

The Daily Transactions metric provides a snapshot of the total number of confirmed transactions carried out on a blockchain network. Typically, strategic crypto investors consider it a bullish signal when there is an increase in fundamental network activity during a price rally. 

Importantly, it suggests that the ongoing Dogecoin price rally is supported by organic growth in network transactions, and not merely price speculators ape-ing into the crypto market rally. 

Hence, if this thesis holds, Dogecoin investors can anticipate another leg-up in days ahead, before a major retracement. 

DOGE Price Forecast: Possible $0.2 Retest Before Correction 

From an on-chain standpoint, Dogecoin price looks set to generate momentum to outperform Shiba Inu (SHIB) and PEPE for the third consecutive month. 

However, for the bulls to validate this $0.2 prediction, they must first breakdown the significant psychological resistance level at $0.10.

The Global In/Out of the Money (GIOM) data, which groups the current DOGE holders according to their entry prices, also confirms this prediction.

It shows that 253,050 million current holders had bought 2.79 billion DOGE the last time price crossed $0.11. Having held at a loss for more than a year, these investors could now be tempted to book profits, once Dogecoin price approaches their break-even point around $0.10 again. 

But if DOGE price can beat that resistance, it could trigger a much larger upswing toward $0.2 as predicted.

Dogecoin (DOGE) Price Forecast | GIOM data | Source: IntoTheBlock
Dogecoin (DOGE) Price Forecast | GIOM data | Source: IntoTheBlock

On the flip side, the bears could invalidate that positive prediction if DOGE price dips below $0.07. But, in that case, the 628,230 holders that bought 41.9 billion DOGE at the average price of $0.077 could offer significant support. 

If those investors HODL firmly, its is unlikely that Dogecoin price will drop below $0.07 in the days ahead.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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