By Key Points
- Dogecoin active addresses hit an 8-month high of 133,880.
- Transaction velocity and whale activity are on the rise.
- Price prediction: DOGE tests key resistance at $0.1115.
- Bearish sentiment could push the price to $0.094.
With all that has been happening on the network recently, everyone has come down to Dogecoin price prediction as it reached an 8-month high of activity within the network.
With the increase in the number of active addresses and the transaction velocity, it has been showcased that there is increasing adoption of Dogecoin.
But the question still stands: Is there going to be an increase in the price of Dogecoin due to this high utilization, or is there some price depression just around the corner?
##DOGEcoin usage hits THIS major milestone: How will DOGE benefit?https://t.co/g5L80wE3xk
— Altcoin Courier (@AltcoinCourier) October 13, 2024
Network Expansion and Dogecoin Price Prediction
Emerging reports show that traders will be expecting Dogecoin price prediction for October based on the network activity which broke into record levels. As a famous analyst, Ali made it clear, Dogecoin active addresses recently soared to 133,880 which is an 8-month record.
Such expansion in user activity implies that more persons are using DOGE for transactions. This is typically an indication of increased market adoption.
Data from Sentiment suggests that the transaction velocity of the cryptocurrency has been on the rise since the beginning of the month.
This means that the transactions have been faster and more frequent than the previous few months where when there was less activity amongst the users transactions were also fewer.
When combined with the increase in the transaction counts, it becomes very clear that indeed Dogecoin use is on the rise.
Nonetheless, this does not always translate to gains in price in a short timeframe. What does this indicate for the currency Dogecoin?
A Whale as an Objective Factor of Dogecoin Price Movements
The activity of enormous investors commonly referred to as whales emerges as another vital consideration when predicting the price of Dogecoin. In the last few days, the number of giant customers executing transactions has been more or less steady which shows activity from the key players.
More often than not, persistent whale activity is a good sign that there are expectations of a price appreciation in the underlying asset.
In the past few hours, the MVRV ratio of Dogecoin has gone up slightly to 1.2%. Even though this is not optimistic in the long-term perspective, it indicates that at least some investors still consider that DOGE will soon recover and move higher.
Nonetheless, this is confirming the analysis that in the comings days, Dogecoin has tested the resistance level situated at $0.1115.
If the bulls manage to do so, the price of Dogecoin will terribly shoot up to $0.13 in the immediate term. However, if this resistance is not bound to be surpassed, a bearish pullback may be expected.
Can there be a resurgence of Dogecoin, or is it inevitable that it will drop?
Demonstrating reasons like network usage and whale activity positively, the Dogecoin crypto gives glaring contradictions. Weighted Sentiment shows that negative sentiment is on the rise and will be off the charts pretty soon.
Again, the present status of Dogecoin in the Greed and Fear Index demonstrates that “Greed” is the order of the day.
It has been noted that, on entering this stage of the market, the price usually goes up and then drops.
With the negative scenario becoming a reality, Dogecoin’s price forecast has anticipated that, if a correction even occurs, it would take the price to $0.10. From the bearish perspective, there’s a further drop where Dogecoin can reach $0.094, a significant drop from the current price level.
Final Thoughts on Dogecoin Price Prediction
With the price of Dogecoin reaching significant resistance and key spikes in network activity, the next few days will be crucial in determining the future price of Dogecoin.
Investors should focus on the Mand CRX activity, Sentimenometers, as well as the general state of the crypto market to understand whether DOGE will be able to overcome the resistance or will be adjusted downwards.
