- DOGE trading volume fell along with weighted sentiment.
- Most market indicators suggested that DOGE’s price could fall further.
Dogecoin [DOGE] has witnessed a significant drop in network usage in recent months. Earlier, the blockchain network activity witnessed a boost when the new Doginals were launched.
Read Dogecoins [DOGE] Price prediction 2023-24
Will a new update regarding Doginals now be good for Dogecoin once the heat settles down?
Will Dogecoin network activity recover?
In recent months, Dogecoin’s network usage has dropped significantly, which was evident in daily transactions. According to Bitinfocharts, DOGE‘s daily transactions fell below the 50,000 mark after a peak in July.
The graph has also remained at the same level for more than a month now.
Source: Bitinfocharts
The blockchain previously witnessed a massive surge in network activity when it released its Doginals. To start, Doginals are fragments of Dogecoin – individual ‘Shibes’ on the Dogecoin network – that are tagged with rich data, such as text or images.
The Doginals DRC20 standard allows Dogecoin nodes to enroll any Shibe with data, creating a Doginal.
When the blockchain launched Doginals, network activity soared, but later cooled off. Now, there has been a new update regarding the same, which can once again act as a catalyst for increasing the network activity of the memecoin.
Doge Labs recently announced that version 1.0.11 of the Doge Labs Wallet has gone live in Chrome. The update could intrigue new users and in turn increase blockchain network activity.
Version 1.0.11 of the Doge Labs Wallet is now available in the Chrome Web Store!
Installed extensions should be updated automatically. ????
If not, go to the Extensions tab, enable Developer Mode and click Update at the top left. pic.twitter.com/rfCyubHYGK
— Dogelabs | drc-20 Doginals (@verydogelabs) October 8, 2023
Dogecoin is witnessing a price correction
Amid this, DOGE’s price saw a massive drop. According to CoinMarketCap, DOGE is down more than 3% in the last 24 hours alone. At the time of writing, it was trading at $0.05894 with a market cap of over $8.3 billion, making it the ninth largest crypto.
DOGE trading volume has also fallen in recent days, indicating that investors were not actively trading the memecoin.
DOGEThe Binance Funding Rate remained green most days last week, meaning investors bought the coin at a lower price. Moreover, negative sentiment surrounding the token was dominant in the market, which was evident from the dip in weighted sentiment.
Source: Santiment
How many Worth 1,10,100 DOGEs today?
Things could get worse, as Dogecoin’s Bollinger Bands suggested that the coin’s price volatility could increase soon. The Relative Strength Index (RSI) fell sharply.
Furthermore, DOGE’s Chaikin Money Flow (CMF) also registered a decline towards the neutral line, raising the chances of a sustained price move south.
Source: TradingView