Key on-chain metrics for Dogecoin have increased significantly, indicating increased activity despite price consolidation. Over the past week, the average transaction size has increased dramatically, reaching a seven-day high of $33,411 on November 12, 2024, while continuing to hover around a seven-day average of $11,960.
This dramatic increase suggests that the network is being dominated by larger transactions, which may be a sign of increased interest from institutional investors or whale activity. Dogecoin’s volatility has also increased significantly in tandem, reaching a high of 147% on the 30-day chart.
This is indicative of high price volatility, which often precedes sharp market movements. In the past, significant pullbacks or powerful rallies have preceded periods of elevated DOGE volatility. A critical phase can be seen on the market side of the DOGE price chart. Dogecoin had a significant rally in November and is now trading at around $0.40. The asset has since consolidated within a descending channel after encountering resistance near $0.48.
The 50-day EMA and $0.35 are clear support levels. A fall towards the 200-day EMA at $0.21 could occur if DOGE is unable to maintain this level. Dogecoin has a chance to regain its upward momentum on the bullish side if it surpasses the descending resistance trend line. Traders should keep an eye on the $0.42 to $0.45 range for signs of a recovery.
There is a chance that a successful break above $50 could initiate a rally towards the psychologically significant $0.50 level. The market is heating up for Dogecoin, as evidenced by increasing volatility and increased transaction sizes. But there are problems given the asset’s lack of volume and its inability to maintain its previous highs.
Any significant volume entry above current levels may be a signal of the start of a new rally. An important factor in determining whether DOGE can reach its previous highs will be the state of the broader cryptocurrency market.
