Bullish Potential Indicated by DOGE Network Activity in Dogecoin

Dogecoin (DOGE) investors are hoping for a rebound after a 25% decrease in February, with increased network activity offering potential for a price rally. Analyses of on-chain data by cryptocurrency analytics firm Santiment indicate that Daily Active Addresses on the Dogecoin network have risen by 40% since 1 March, despite falling prices. Historically, spikes in Daily Active Addresses have preceded DOGE rallies. Similarly, Daily DOGE Transaction Count has doubled in the past seven days to reach new record volumes in 2023. These trends suggest that new crypto investors may be buying the dip, offering hope for a future price rally. However, GIOM data from IntoTheBlock shows that only 24.5% of DOGE investors are in profitable positions, suggesting that most may avoid selling at current prices. Analysts predict DOGE will face resistance around the $0.075 range, where 81,000 addresses holding 35 billion DOGE may opt to take profits. If DOGE passes this obstacle, it could reach $0.084, where 400,000 addresses holding 34 billion tokens reside. If a bearish trend emerges, the 333,000 addresses that bought 4.8 billion DOGE at $0.64 will provide significant support. But with low volume around this level, DOGE might slide further in the event of a correction to around $0.56, where 435,000 addresses hold 6.7 billion DOGE. As with any investment, BeInCrypto urges investors to do their own research and make informed decisions.

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