- The social sentiment surrounding Dogecoin has turned bullish in recent days.
- DOGE fell 1.7% and most market indicators remained bearish.
Dogecoin [DOGE], the world’s largest meme coin, did not show much volatility in its price in recent days. However, network activity boomed, which could have a positive impact on the coin’s price if the trend continues.
Let’s take a closer look at the state of DOGE to understand whether investors should expect gains from DOGE in the short term.
Dogecoin’s network is growing rapidly
Ali, a popular crypto analyst, posted a tweet on January 30 highlighting one of Dogecoin’s latest achievements.
According to the tweet, the meme coin witnessed a massive surge in network growth. This was evident from the fact that the number of new DOGE addresses increased by 1,100% in the past week.
The #Dogecoin network is witnessing a remarkable increase in growth, with the number of new addresses increasing by a whopping 1,100% in the past week!
A record number of 247,240 new ones on January 29 alone #DOGE Addresses were created, marking a record high. A continued upward trend in network… pic.twitter.com/7tNAPzJaP2
— Ali (@ali_charts) January 30, 2024
To be precise, on January 29, 2024, a record 247,240 new DOGE addresses were created, an all-time high. Such an increase in network activity is generally considered a bullish signal, indicating a possible price increase.
Not only did the meme coin’s network activity skyrocket, but a new integration took place. AMBCrypto reported earlier that the OKX Web3 marketplace has integrated Dogecoin’s inscription token standard, DRC-20 tokens.
Should Investors Expect a Dogecoin Bull Rally?
Although the above developments looked optimistic for DOGE, in reality things were yet to be reflected.
According to CoinMarketCap, DOGE has fallen by more than 1.7% in the past 24 hours. At the time of writing, it was trading at $0.08012 with a market cap of over $11.4 billion.
The price drop took a toll on Dogecoin’s social metrics as social volume plummeted in recent days.
Nevertheless, despite the negative price action, sentiment around DOGE turned bullish, as evidenced by the increase in weighted sentiment on January 30, 2024.
Source: Santiment
Given the high network activity, if DOGE To actually start a rally, it must break above a critical resistance zone.
AMBCrypto’s analysis of DOGE’s liquidation heatmap revealed that when DOGE’s price previously reached $0.083, there was a massive liquidation. Therefore, it could act as a strong resistance level, where the meme coin needs to break out of to sustain a bull rally.
Source: Hyblock Capital
To better understand the feasibility of a DOGE bull rally in the short term, AMBCrypto looked at the daily chart.
Realistic or not, here it is DOGE’s market cap in BTC conditions
Both Dogecoin’s Money Flow Index (MFI) and Relative Strength Index (RSI) moved sideways near their respective neutral points. This clearly indicates that investors may see some slow days.
The Bollinger Bands have also revealed this DOGEThe company’s price was in a less volatile zone, indicating that the chances of an unprecedented price increase in the short term were slim.
Source: TradingView