157,000 Dogecoin Active Addresses in 24 Hours, What's Happening?

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Dogecoin (DOGE) has witnessed a notable surge in network activity, occurring even as price volatility persists. Data from IntoTheBlock reveals that 157,190 addresses were active within the last 24 hours, indicating heightened investor interest in the meme coin.

Dogecoin Network Activity Jumps 34.91% Despite Price Dip

This increased activity represents a significant 34.91% rise within the Dogecoin ecosystem. The growth in network activity, despite a general market price decline, suggests that investors may be engaging in substantial accumulation, a behavior often observed when market participants foresee a potential price breakout.

At the time of this report, Dogecoin was trading at $0.1996, a decrease of 2.19% over the past 24 hours. During this period, the meme coin briefly fell below the $0.20 support level on three separate occasions, only to rebound amidst the ongoing market fluctuations.

Adding to the intrigue, Dogecoin whales have reportedly increased their holdings by over 1.1 billion DOGE in the last 48 hours. Some analysts view this significant accumulation during bearish conditions as a potentially risky move.

Their concern stems from the possibility that liquidations within the ecosystem may surpass the demand from these large holders, potentially leading to continued sell pressure.

However, with the substantial number of active addresses currently observed, market watchers are keen to see whether the balance between buying and selling activity could trigger a price reversal.

Can Dogecoin Reclaim $0.20 Support?

It is plausible that DOGE could reclaim the $0.20 resistance zone, fueled by the observed increase in network growth. However, should it fail to do so, the next support level for the meme coin lies at $0.191. As of this writing, trading volume has decreased by 17.91% to $1.45 billion. A near-term increase in trading volume could potentially support a price rebound.

Dogecoin's large holders may once again intervene to absorb the excess DOGE circulating in the market, aiming to stabilize the price. Notably, these large holder investors previously purchased over one billion DOGE when the price declined to $0.194.

It remains to be seen whether they will take similar action now that the meme coin's price has breached the $0.20 support level. Read original article on U.Today