Dogecoin Price Analysis: Is DOGE Returning The Gains Following Spike In Network Activity?

Dogecoin price analysis: DOGE, the meme-inspired cryptocurrency, recently witnessed a significant uptick in its valuation. Over the last week, it managed to break through the $0.087 support level. This surge has pushed the Dogecoin price to $0.0871, representing a promising increase of over 2% in the past day. Such a shift suggests a growing positive sentiment within the DOGE market.

Dogecoin Price Analysis: Gains Continue Amid Bullish Market Sentiment

In the previous trading sessions, DOGE price began its ascent from a support base of $0.082. DOGE overcame resistance near $0.0850, entering a bullish phase. Currently, Dogecoin fluctuates between $0.080 and $0.08200. This pattern indicates a steady bullish momentum, pointing to an optimistic short-term outlook.

This upward trend has contributed to a growth of more than 7% over the week. The cryptocurrency market overall is experiencing a bullish phase. Bitcoin has crossed the $51k mark, and Ethereum has reached beyond $2,900. Dogecoin has been on an upward trajectory for the past month, showing a gain of more than 10%. This aligns with the predominantly green performance seen across the cryptocurrency board.

The meme coin recently experienced a 127% increase in its trading volume, hitting $897 million. Dogecoin price now holds the 11th position in terms of market capitalization, with its value estimated at approximately $11.57 billion. 

Dogecoin Price Analysis: Whale Activities and Market Dynamics

In the past few days, Dogecoin has seen a revitalization in its market activity. This boost is largely due to an impressive jump in trading volume, which has exceeded the $1 billion mark. This surge is attributed to significant trades by large-scale investors, often referred to as whales.

Dogecoin has processed more than 1M transactions every day since the 30th of January! pic.twitter.com/dpj83QLQr2

— IntoTheBlock (@intotheblock) February 19, 2024

Data from the decentralized finance (DeFi) analytics platform IntoTheBlock, shared in an X post dated February 19, reveals that since January 30 and throughout February, the DOGE blockchain has consistently processed more than 1 million transactions daily. This heightened activity underscores the increasing interest and engagement with Dogecoin within the cryptocurrency community.

Dogecoin Momentum: Technical Indicators and Future Outlook

Dogecoin is currently navigating through key resistance and support levels in the market. The cryptocurrency encounters its first resistance at approximately $0.089. If it breaks through, it faces another significant barrier at $0.095. Surpassing this level could propel Dogecoin towards the $0.098 mark, with the $0.100 threshold not far behind. A continued upward trajectory could potentially elevate its price to $0.120.

Conversely, a corrective downward movement might ensue if Dogecoin fails to maintain momentum beyond the $0.090 level. The first level of support in such a scenario lies near the $0.0860 mark.

The latest technical indicators suggest a bullish outlook for Dogecoin. The Moving Average Convergence Divergence (MACD) for DOGE/USD showcases a bullish crossover, with the signal line positioned above the MACD line, indicating a strong buying interest. The Average Directional Index (ADX) stands at 15, indicating a forthcoming price increase. The Relative Strength Index (RSI) for DOGE/USD hovers above 50, suggesting a neutral market condition.