Dogecoin (DOGE) price has traded above $0.08 since Elon Musk placed his logo on the Twitter homepage. On-chain metrics show that Dogecoin has experienced spikes in network traction despite media hype. Will DOGE price recover above $0.09?
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Dogecoin dominated the media headlines in the first days of April 2023.
As the market euphoria subsided, DOGE bears expected the price to pull back towards $0.07. But on-chain data shows that DOGE seems to have found higher price support in the $0.08 zone.
Dogecoin is attracting new demand
While the DOGE price retraced 16% from the local high of $0.10 recorded on April 3, Dogecoin has continued to post spikes in daily active users.
According to data collected by Santiment, on April 11 and 12 Dogecoin recorded more than 100,000 transactions on two consecutive days, the first time since May 2021, when it hit an all-time high.
When the number of daily active users increases, it indicates a growing market share and increased interest in the blockchain network. Ultimately, it leads to an increase in demand for the underlying cryptocurrency. The Dogecoin network has consistently attracted more than 60,000 daily users since March 26. If the trend continues, it could soon translate into further price gains for DOGE holders.
Likewise, the negative social perception around Dogecoin could be another bullish factor in the coming weeks. Santiment’s data shows that the weighted sentiment indicator around Dogecoin-related topics seems to be trending negatively.
Since the recent high of 7.45 recorded on April 3rd, Dogecoin’s sentiment-weighted has been trending well below 1, since April 7th.
DOGE Price Prediction: A Bounce Toward $0.09?
In/Out of Money Around price data from IntoTheBlock suggests that Dogecoin could soon be back above $0.09.
The chart below illustrates that the bulls could launch a bounce if the Dogecoin price can break above the current resistance at $0.085. But the 102,000 addresses containing 15.3 billion DOGE will present a challenge.
the market could turn the bears’ course if DOGE loses the support at $0.083, where 165,000 addresses hold 3.54 billion tokens. If that happens, it could trigger a sell-off that could send DOGE price down to $0.075 before finding its next significant support.