Despite the extinction of the hype around the topic of “Twitter”, some on-chain metrics of the Dogecoin network show an increase. This may support the DOGE course
The popular DOGE meme coin, created by the Dogecoin project, recently gained significantly and broke the $0.08 mark amid news that the new owner of the Twitter platform, Elon Musk, a well-known Dogecoin enthusiast, replaced the famous blue bird with an image of a Shiba Inu dog..
However, a few days later, Twitter returned the old logo.
However, despite the fading hype around Twitter, Dogecoin on-chain indicators reflect a surge in transactions on the network, and also show that the token is receiving price support in the region of $0.08.
Perhaps this will allow the DOGE exchange rate to maintain its fighting spirit and recover above $0.09.
However, while the euphoria is waning, the price may first make a correction in the direction of $0.07.
Dogecoin and new demand
DOGE price has retraced 16% from its April 3 high of $0.10, but on-chain data show that the Dogecoin network continues to register record jumps in the number of day active users.
On April 11 and 12, this figure exceeded the 100,000 mark for two consecutive days, according to Santiment data.. This has not happened since May 2021, when the all-time high was updated.
As you can see from the chart below, on April 12, the daily address count was 106,800. This is a 71% increase from the value of 61,715 recorded on April 2nd.
Day Active Addresses on the Dogecoin Networ.
The growth of intraday active users indicates an increase in the project’s market share and an increase in interest in the network.
Accordingly, this may promise an increase in demand for the project’s cryptocurrency.
You can also see from the graph that since March 26, the Dogecoin network has consistently attracted more than 60 thousand. users. If this trend continues, it could support further growth in the DOGE rate.
In addition, Santiment’s weighted sentiment data characterizes social perceptions of Doge as negative..
The Weighted Sentiment indicator for Dogecoin has dipped sharply from the euphoric high of 7.45 on April 3 and has been below 1 since April 7.
Weighted Sentiment indicator for Dogecoin.
According to this on-chain metric, now the number of negative mentions of Dogecoin on social platforms exceeds the number of positive ones..
This could potentially be bullish for DOGE in the coming weeks as many investors enter the market to buy the asset on dips under such conditions.
DOGE could launch a bounce to $0.09
According to IntoTheBlock statistics on Global In/Out of Money Around Price positions, Dogecoin rate may soon recover above $0.09.
Recall that this metric tracks addresses that are approaching breakeven and reflects the distribution of hodlers along the average purchase price lines.
As you can see from the above chart, the bulls could trigger a bounce if the Dogecoin price manages to break through the current $0.085 resistance..
However, the area where 102 thousand. addresses hold 15.3 billion DOGE, could be a major hurdle.
If the rally does gain momentum, the price could reach $0.09. There are 54 thousand. addresses holding 2.95 billion DOGE.
In/Out of the Money
Meanwhile, the loss of the $0.083 support (concentration area of 165k addresses that bought 3.54 billion coins) could trigger an aggressive DOGE sell-off towards the next important $0.075 support.