Dogecoin Transaction Soars: Signal Of Awakening Or Just Hype?

Dogecoin transactions jumped (Photo; Doc. Newsbtc)

JAKARTA - Dogecoin (DOGE) has again attracted the attention of the crypto market with a significant daily spike in transactions. Based on the latest data from the on-chain analytic platform, IntoTheBlock, the Dogecoin network recorded 1.93 million transactions in the past week, the highest since July 2024. This indicates activity that has started to stretch on the Dogecoin network, which was previously sluggish for nine consecutive weeks.

Although the price of Dogecoin is still stuck at around 0.10 US Dollars (Rp1,529), this spike in transactions could be a signal of changes in market sentiment, suggesting a potential price increase in the near future. However, is this spike in activity enough to boost Dogecoin's price significantly?

In the IntoTheBlock report, Dogecoin's transaction volume has surged more than 100% compared to the previous week. This spike shows a new movement in the Dogecoin network, which previously tended to stagnate since March 2024. Although the number of these transactions is still much lower than its peak in February and March, when Dogecoin processed more than 10 million transactions per week, this increase remains a positive signal.

The surge in Dogecoin's network activity can be interpreted as a revival of interest among its community, after several months where on-chain activity tends to be slow and transaction volume decreases.

The increase in the number of transactions in the crypto world is usually related to the surge in purchasing momentum among traders. In Dogecoin's case, this spike reflects optimism among market players, which could potentially raise the price of Dogecoin in the short term.

At the time of writing, Dogecoin is trading at the level of 0.1015 US Dollars (Rp1,551), slightly above the psychological level of 0.10 US Dollars (Rp1,529) which is considered a critical point. Previously, on September 16, Dogecoin had dropped below 0.10 US Dollars (Rp1,529) before recovering. However, despite slight price increases, the growth rate slowed, signaling strong resistance around the level of 0.10 US Dollars (Rp1,529).

Quoted from Bitcoinist, according to crypto analyst Ali Martinez, the next resistance level for Dogecoin is at 0.11 US Dollars (Rp1,681). This is an important point as there are more than 23,400 wallet addresses that currently hold 31 billion DOGEs in a loss position. If DOGE prices reach this breakeven point, many DOGE holders are likely to sell their assets, adding to resistance pressure at that level.

Meanwhile, some market analysts suggest that investors remain cautious. Although the daily spike in transactions could be an early signal of revival, DOGE still needs to penetrate resistance above 0.10 US Dollars (Rp1,529) consistently to trigger a larger rally.