Dogecoin has traded above $0.08 since Elon Musk’s Twitter placed the Dogecoin logo on its homepage. On-chain metrics show that Dogecoin has experienced spikes in network traction despite the fizzling media hype. Will the DOGE price rebound above $0.09?
Dogecoin dominated crypto media headlines in the early days of April 2023. As the market euphoria tapered, DOGE bears expected the price to retrace toward $0.07. But on-chain data shows that DOGE appears to have found higher price support around the $0.08 zone.
Dogecoin is Attracting New Demand
While DOGE price retraced 16% from the local high of $0.10 on April 3, Dogecoin has continued to record spikes in daily active users. According to data compiled by Santiment, on April 11 and April 12, Dogecoin recorded more than 100,000 transactions on two consecutive days —the first time since May 2021, when it reached an all-time high.
The chart below further shows that 106,800 transactions recorded on April 12 is a 71% improvement from the 61,715 recorded on April 2.
When the number of daily active users increases, it indicates a growing market share and increased interest in the blockchain network. Ultimately, it leads to a spike in demand for the underlying cryptocurrency.
Notably, the chart also reveals how the Dogecoin network has consistently attracted over 60,000 daily users since March 26. If the trend continues, it could soon be translated into further price gains for DOGE holders.
Likewise, the negative social perception surrounding Doge could be another bullish factor in the coming weeks. Santiment data shows that the Weighted Sentiment Indicator in relation to Dogecoin-related topics appears to be trending negative.
From the recent euphoric high of 7.45 recorded on April 3, Dogecoin weighted sentiment has been trending well below 1, since April 7.
Weighted Sentiment gauges the overall sentiment towards a cryptocurrency by evaluating the ratio of positive media mentions to negatives. When savvy investors get a sense of an overall negative sentiment surrounding an asset, they may consider it perfect timing to buy the dip.
In summary, spikes in Dogecoin daily active addresses and the negative market sentiment could soon attract bullish investors.
DOGE Price Prediction: Bulls Could Force a $0.09 Rebound
IntoTheBlock’s In/Out of Money Around price data suggests that Dogecoin could soon be back above $0.09.
The chart below illustrates that bulls could launch a rebound if the Dogecoin price can break above the current $0.085 resistance. But, the 102,000 addresses holding 15.3 billion DOGE will pose a challenge.
However, if DOGE can push past that resistance, the rally could gather enough momentum to reach $0.09. 54,000 addresses holding 2.95 billion DOGE meme coins could mount another roadblock here.
Still, the market could swing the bears’ way if DOGE loses the $0.083 support where 165,000 addresses hold 3.54 billion coins. If that happens, it could trigger a massive sell-off that could drop the DOGE price to $0.075 before finding its next significant support.
Disclaimer
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