These could be foreshadowings of an eventual Dogecoin rally.

 103 Interactions,  6 Today

According to common thinking, no news is good news. A similar thought could be noticed in the market for Dogecoin, as the 8th ranked alt confronted severe psychological resistance at $0.305, but remained far above the $0.27 barrier.

Dogecoin has recently showed no to minimal gains, and while market anticipation is low, at least in terms of price, there were some encouraging signals for Dogecoin’s future. DOGE, for example, establishing higher lows on the 12-hour chart was a major relief for altcoin traders.

Further, Dogecoin investors pushed through the demand zone from $0.26 to $0.28 which was a significant resistance barrier during June, and a strong support level from early May to June-beginning. The next target of $0.35 can be reached if buyers make a strong comeback.

Development powering growth?

A recent source of concern was Dogecoin’s diminishing development activity, which was seeing a vertical surge at the time of writing. On the contrary, the number of open issues on Github has decreased from 205 to 148 in the last four days. Issues on Github assist developers keep track of their work, and a decline in this number indicated a slowing state of development activity.

Additionally, social volumes for DOGE didn’t see much rise, in spite of attention from Tesla CEO, Elon Musk.  A mentionable achievement for the network was when recently, its nodes went from 200 to 700+ as the next fee update was in the works.

See also  El Salvador's president has said that infrastructure is already being created in preparation for the country's acceptance of Bitcoin.

Furthermore, a Doge fan known as “Doge Whisperer” pointed out that 205 computers were running the most recent Doge version and that more nodes needed to be upgraded to 1.14.4. Musk described it as “important” in his response, which drew some attention to the coin.

Nonetheless, Musk’s recent efforts to push the coin’s price have been futile, and this move did not help the coin’s price. The total number of nodes on the Doge network was roughly 1,644 at the time of writing. However, the addition of more nodes might help to protect the network and reduce transaction fees. At the time of writing, Doge’s average transaction cost was still higher than it had been between July and mid-August.

While development could power growth for DOGE and a spike in development activity at the time of writing painted a bullish picture for the coin, the rise in nodes could further push the network.

See also  Goldman Sachs is preparing a Bitcoin offering for its customers, and the price of Bitcoin has risen above $58,000.

Holders in profit 

Historical In/Out of the money data revealed an increased trend, indicating an increase in the number of profitable locations. While the same has been followed by a decline in the past, as Dogecoin held its pricing, the prospects of a dip appeared limited this time.

Furthermore, a continual increase in the total addresses with balance meant that holders were not profiting at such high prices, which is a less common tendency for Doge.

Thus, while a rally above $0.367 is plausible, with the same number of bulls and bears for DOGE in the the near future, it’s struggle will continue. However, a push in active addresses which saw a steady decline could fuel a rally.

Subscribe to our newsletter


Leave a Reply

Your email address will not be published. Required fields are marked *