The well-known memecoin Dogecoin (DOGE) has maintained a sideways trading pattern, staying above the 200-day exponential moving average (EMA) since January 7, with DOGE currently priced at €0.07. Over the past week, DOGE has seen a marginal 0.4% decrease, and a 14% decline in the last month. Despite the potential for additional losses indicated by the technical setup, the recent surge in network activity for DOGE is noteworthy.
Notably, Dogecoin has witnessed a substantial uptick in its network activity. According to data from market intelligence firm IntoTheBlock, more than 890,000 new Dogecoin addresses were generated in the past week.
This surge in new addresses aligns with an adoption rate of 86%, reflecting the influx of new users engaging in their initial transactions on the blockchain network.
Surge in Dogecoin Network Engagement
The Dogecoin network is witnessing a substantial uptick in its activity. According to data from market intelligence firm IntoTheBlock, over 890,000 new Dogecoin addresses have been established in the past week. This rise in new addresses aligns with an adoption rate of 86%, signifying that a significant number of new users are initiating their initial transactions on the blockchain network.
New Dogecoin addresses. Source: IntoTheBlock
Additional data from Santiment shows an increase in daily active addresses (DAA), which increased from 124,240 on January 23 to over 498,000 on February 2.
Source: Santiment
This resurgence in network activity could be due to the launch of the iconic DOOM video game on the Dogecoin blockchain and the upcoming launch of DOGE-1.
🚀 DOOM meets Dogecoin! 🎮 Developer #minidogeart deploys the iconic 1993 DOOM game on the Dogecoin blockchain using Ordinals technology. Now, gaming data is fetched entirely from Dogecoin network, showcasing the potential of blockchain for preserving digital assets.
— BlockVoyager (@BlockVoyagerAIO) January 24, 2024
A third factor is the growing use of Dogechain, a layer 2 blockchain built on the Dogecoin network.
It is important that creativity brings new victories and with them new users – Dogechain#Dogechain #Dogecoin pic.twitter.com/yjSjsNncqz
— DogeChainNews (@DogeChainNews1) February 2, 2024
These aspects have sparked interest in the Dogecoin network, and if this trend persists, the value of DOGE might respond as investors initiate positions in the token. Nevertheless, the technical configuration indicates that the price is poised for a more significant correction from its current levels.
A descending triangle in DOGE may draw in more bearish sentiment. Since December 6, 2023, DOGE’s price movement has exhibited a pattern of lower highs and relatively consistent lows around $0.078, forming a descending triangle on the daily chart.
Confirmation of this bearish technical pattern occurs when the price conclusively closes below the support line, constituted by equal lows. This forecasts a decline in price equivalent to the triangle’s height.
Source: TradingView
Despite this pessimistic outlook, the Relative Strength Index (RSI) is in the neutral zone at 45, indicating the current indecision of traders.
