Dogecoin has been heating up recently and this has been apparent in both its price, as well as its on-chain meme metrics. With investor interest now turning back to the OG meme coin, there has been some marked increase in its on-chain metrics, which suggests that the rally might just be starting.
Dogecoin On-Chain Metrics See Significant Increase
Among the Dogecoin on-chain metrics that have seen a significant uptick in recent days, three in particular stand out the most. These include the transaction count, number of whale transactions, and the age consumed of DOGE tokens.
Transaction count and whale transactions saw a notable shift as the price began to recover. As data from the on-chain tracking platform Santiment shows, these active transactions rose significantly from 1.22 billion to 9.2 billion in the space of two days. Looking at the DOGE chart, it shows a correlation during this time between the increase in its price and its transaction count.
Following the same path, the whale transactions, also know as large transactions rallied at this time. These transactions which are carrying DOGE tokens worth $100,000 or more spiked from around 1,500 daily transactions at the start of March to over 4,000 daily transactions toward the end of the month.
The third metric that has seen an increase during this time is the age consumed. The “Age Consumed” here refers to the amount of time that DOGE tokens are being held by investors. So rather than selling their coins, more Dogecoin investors are choosing to hold onto them in anticipation of more upside.
Source: Santiment
DOGE Bulls Face Resistance
Despite Dogecoin showing considerable strength recently, it continues to face considerable resistance from bears who struggle to pull down the price. The main price point of contention now is $0.2, where the bears have mounted resistance.
Since hitting this level in early March, Dogecoin has been unable to revisit it, making it the level to beat. Nevertheless, the coin is sitting above its 50-day moving average, which means DOGE is skewing toward buy for the short term.
In addition to its on-chain metrics heating up, the Dogecoin daily trading volume witnessed a 13% increase in the last day, suggesting increased interest. If these metrics continue to rise, it could translate to demand for DOGE and this could trigger a rally above $0.2.
At the time of writing, Dogecoin is holding steady above $0.18 and maintaining a 36% gain on the 7-day chart.
DOGE price readies to retest $0.2 resistance | Source: DOGEUSDT on Tradingview.com
Featured image from NewsBTC, chart from Tradingview.com
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