Dogecoin Activity Soars, Price Holds at $0.22
Key Takeaways
- Dogecoin (DOGE) has seen a sharp spike in active addresses – roughly 15 times more within just a few days.
- Despite this on-chain activity, the price remains under pressure, hovering around USD 0.22.
- Traders on Binance are mostly betting on rising prices – the long/short ratio is over 3:1.
- An overweight in long positions increases the risk of sudden price corrections.
Massive Surge in Active DOGE Addresses – What’s Behind It?
On May 14, the number of daily active Dogecoin addresses skyrocketed from an average of 45,000 to over 680,000, according to data from Santiment. That’s a 15-fold increase in less than three days.
Such spikes typically indicate strong user interest or large-scale transactions. It’s also possible that automated wallets are driving the increase. Whether this represents sustainable activity or short-term speculation remains unclear.
Traders Bet on Rising Prices – But the Price Remains Flat
On the trading platform Binance, there is a clear trend: the ratio of long to short positions is over 3:1. This means three times as many traders are betting on rising prices as on falling ones. This data comes from Coinglass.
Such an imbalance can create short-term upward pressure, but it also carries risks. If the price doesn’t rise as expected, mass liquidations – the automatic closing of positions – could occur, putting additional pressure on the price.
Price Stagnates Despite Positive On-Chain Data
Despite strong blockchain activity, Dogecoin’s price remains unimpressed. After a local high of over USD 0.24, the price fell back to around USD 0.22. Over the past four days, there have been consistent red candles – a sign of selling pressure.
The Relative Strength Index (RSI), a technical indicator, stood at 61 – above the neutral zone but below last week’s levels. This suggests weakening buying momentum. While the price is still above the 20-day moving average (SMA), the upper Bollinger Band is acting as resistance.
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What Does This Mean for You as an Investor?
The current situation with Dogecoin is a classic example of a disconnect between on-chain data and price performance. While blockchain activity is surging, the price is stuck in a sideways trend.
If you’re invested in DOGE or considering getting in, it’s important to closely monitor developments. A sudden price breakout is possible – but so is a pullback if traders’ expectations aren’t met. Technical indicators currently point to a consolidation phase.
Our Assessment
The sharp increase in active Dogecoin addresses is a notable signal. But without a corresponding price reaction, caution is advised. The high number of long positions on Binance increases the risk of abrupt price movements. Until a clear trend reversal emerges, DOGE remains in a critical phase.
If you’re already invested, consider setting stop-loss levels and closely following market developments. New investors should wait for a stable trend to form. The coming days could be decisive.
Sources
- Coinglass
- Santiment
- TradingView
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
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| Further practical applications | |
| Price | 0.228823 |
| 24h % | 2.31 % |
| 7d % | 11.34 % |
| 30d % | 49.46 % |
| 60d % | 31.65 % |
| 1y % | 46.90 % |
| Market Cap | $34,152,559,009.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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