DogeCoin Network Activity: Parabolic Rise & Price Trend

The popular cryptocurrency Dogecoin (DOGE) has been trading in a sideways pattern above its 200-day exponential moving average (EMA) since January 7th. While the price of DOGE has declined by 0.4% in the past week and 14% in the past month, recent data shows a surge in network activity. Market intelligence firm IntoTheBlock reported that over 890,000 new Dogecoin addresses were created in the last week, with a high adoption rate of 86% as new users made their first transactions on the blockchain. Santiment data also revealed a significant increase in daily active addresses, indicating growing interest in the cryptocurrency. This surge in network activity could be attributed to the release of the DOOM video game on the Dogecoin blockchain and the upcoming DOGE-1 launch. It’s worth mentioning that the increasing use of Dogechain, a layer 2 blockchain on the Dogecoin network, is also contributing to this interest. If this trend continues, it could potentially affect the price of DOGE as investors take positions in the token. According to the technical analysis, the current price of DOGE is likely to experience a deeper correction. Since December 6, 2023, the price of DOGE has been making lower highs and equal lows around $0.078, forming a descending triangle pattern on the daily chart. This bearish formation suggests that the price will drop further if it breaks below the support line. Despite this bearish outlook, the relative strength index (RSI) shows that traders are currently indecisive, as it is at a neutral level of 45.