Key Points
- Dogecoin transactions hit 1.93 million, a new high since July.
- Increased network activity signals rising adoption and potential gains.
- DOGE price reached $0.108, nearing key resistance at $0.11.
- Whale holdings provide market stability as interest in Dogecoin grows.
Dogecoin transactions have surged to 1.93 million in the past week, marking the highest level since early July.
This sharp rise in activity is fueling optimism around the token’s future, as increased transaction volume often indicates growing adoption and network usage.
The recent surge in Dogecoin transactions comes as the meme coin hit a price of $0.108. This price bump aligns with the growing transaction count, suggesting a correlation between Dogecoin’s price movement and network activity.
If this trend continues, Dogecoin could break through its next major resistance level of $0.11 in the coming days.
Dogecoin transactions cross new high since July: What about DOGE?https://t.co/apGaJsBMfr
— John Morgan (@johnmorganFL) September 18, 2024
Why Dogecoin Transactions Are Skyrocketing
The spike in Dogecoin transactions signals increased demand for the cryptocurrency as both a payment method and a speculative asset. According to IntoTheBlock, Dogecoin’s transaction count has steadily risen, reflecting the meme coin’s broadening appeal.
As more users utilize Dogecoin for everyday transactions, the network’s fundamentals are strengthening, which could be a key driver for its future price appreciation.
On-chain metrics also support Dogecoin’s idea of a bullish future. The Funding Rate across exchanges has been mostly positive, indicating that long-position holders are confident about DOGE’s potential.
A positive Funding Rate shows that investors betting on price increases are outnumbering those who are shorting the asset. This growing optimism is one of the reasons why Dogecoin is gaining traction.
Additionally, the OI-Weighted Funding Rate remains in positive territory, further reinforcing the bullish sentiment. This metric highlights that more traders are entering long positions than short ones, underscoring increased market demand for Dogecoin.
Whale Holdings Stabilize the Dogecoin Market
One of the most significant factors contributing to Dogecoin’s stability amid rising transaction activity is the accumulation by whales. As of this week, whales hold 65.29 billion DOGE tokens, representing 41.67% of the total supply.
The influence of whales in the market tends to be stabilizing, as they are less likely to react impulsively to market volatility or FUD (Fear, Uncertainty, Doubt). Their holdings contribute to a steadier market environment, which can be beneficial for retail traders.
Retail traders, who currently hold 37% of Dogecoin’s total supply, continue to play a vital role in the market. Their active participation in trading DOGE creates liquidity and adds to the token’s overall transaction count.
Together with whale activity, this interplay between retail and institutional investors is fueling Dogecoin’s rise in market activity and price movement.
Dogecoin’s growing transaction volume also signals its increasing adoption as a payment method.
The ease of using DOGE for transactions, combined with its lower transaction fees compared to other cryptocurrencies, makes it an attractive choice for users looking to transfer value quickly and affordably. If the current market conditions persist, Dogecoin is likely to test the $0.11 resistance level soon.
Can Dogecoin Transactions Drive Future Gains?
With a growing transaction count, strong on-chain metrics, and whale accumulation, Dogecoin appears well-positioned for future gains.
The rise in Dogecoin transactions is a clear indicator of renewed interest and adoption, making it an exciting asset to watch in the coming weeks.
As the meme coin’s price approaches $0.11, breaking through this key resistance level could set the stage for even greater gains.
If Dogecoin continues to attract new users and maintain its rising transaction count, the token could be on the verge of another price rally.
For now, Dogecoin’s transaction surge shows that the market is paying attention—and with good reason. As whales continue to accumulate, retail traders participate actively, and on-chain metrics remain favorable, the future looks bright for DOGE.
