Dogecoin (DOGE) has seen a notable surge in its daily active users, indicating increased activity on its network. According to IntoTheBlock data, the number of daily active addresses, defined as addresses engaging in at least one on-chain transaction within a 24-hour period, has risen by 32% in the last day, reaching a total of 55,444. This increase in daily active addresses is often associated with growing blockchain usage and network demand.
Historically, there’s been a correlation between the number of daily active addresses and Dogecoin’s price. This correlation suggests that active addresses tend to follow price movements rather than actively utilizing the cryptocurrency. The recent surge in active users coincides with a rebound in Dogecoin’s price, which had experienced three consecutive days of decline. As of this writing, Dogecoin is up 2.10% in the last 24 hours, trading at $0.101. Market observers are closely monitoring this correlation, hoping to gain insights into future price trends.
The increased activity could potentially lead to a rise in demand for DOGE, subsequently impacting its price. A sustained rebound could push Dogecoin’s price above its daily SMA 50 at $0.115. Breaking above this moving average could trigger a new upward trend for Dogecoin.
While the surge in daily active users is a positive sign, it’s crucial to remember that the cryptocurrency market is highly volatile and influenced by a myriad of factors. Investors should carefully consider the situation and make informed decisions, keeping in mind that this increase in user activity does not guarantee a price increase.
