- Dogecoin has experienced a surge in price in the past few days.
- The cryptocurrency has seen its highest daily transaction volumes in 2023
- Dogecoin’s price has surged by over 40% in the previous month.
Dogecoin’s recent On-Chain activity has been trending upwards with whales accumulating large amounts of the cryptocurrency. The Dogecoin team announced through their Twitter account that for the first time, 450,000,000 DOGE coins ($40,536,900 USD) were transferred from a top 20 wallet to an unknown wallet. This has been followed by an increase in address activity, as well as a surge in daily transaction volumes.
The polarizing coin tapped the $0.095 handle for the first time since December 29 and has seen its highest daily transaction volumes. Dogecoin’s price has been on an uptrend lately, trading above the 21-day and 50-day moving averages. Firm support has been established at the 200-day Moving Average ($0.0675).
The Dogecoin price analysis on a 1-day timeframe shows DOGE opened the daily trading session at an intra-high of $0.094 and has printed higher highs of $0.0978. However, the digital asset has been on a downtrend since and is currently trading at around $0.09255.
Dogecoin is currently trading inside a range between the 21 EMA at $0.087 and the resistance level of $0.09733. A break out of this range is likely to determine DOGE’s next direction in price. The Fibonacci extension level of $0.091 could act as strong support for Dogecoin if the price fails to break out above the resistance level.
The technical indicators on all the time frames show DOGE prices have started to correct lower after a parabolic rise, signaling that the daily uptrend may be weakening. The bulls are defending the $0.091 support level, with prices dropping by over 1.8% in the last 4 hours.
The Relative Strength Index is sloping towards 50-level and the MACD has created a bearish crossover, indicating a possible reversal in price. Four bearish red bars have formed on the 4-hour timeframe, indicating a down move for DOGE.
The recent surge in price and the bullish sentiment are attributed to the Dogecoin whales, as well as an increase in address activity. However, with prices starting to correct lower, a potential downtrend is imminent if the price breaks below the support levels. Moreover, a break above $0.09733 could signify a further rise in prices for DOGE.
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