Is Dogecoin on the Rise? Key On-Chain Metric Shows Significant Growth

Dogecoin's value increased by 4% on Thursday, reaching $0.14 amid reports of heightened market activity. The cryptocurrency's market capitalization now stands at approximately $21 billion, with a 24-hour trading volume close to $1.6 billion. This uptick has been attributed to a surge in on-chain activity, capturing the attention of both traders and analysts. Notably, data from BitInfoCharts reveals that daily active addresses on the Dogecoin network soared to over 67,500 on December 3, marking its second-highest level in three months. This follows a similar spike in September when DOGE approached $0.30. Dogecoin continues to hold above a crucial support level of $0.138–$0.14, a range that has seen multiple tests. Reports indicate that trading volume has more than doubled during this recent rise, suggesting a growing interest among buyers. While short-term metrics show mixed results, with reports indicating a 5% decline in one instance and a 7.5% drop in another, longer-term observations indicate that the token has lost about 60% of its value in the past year. Traders are now eyeing the $0.16 level as a key resistance point; a solid breakthrough here may signal a shift in the current bearish trend. The 200-day exponential moving average is also being watched closely, serving as a broader indication of medium-term momentum. However, while increasing daily active addresses may hint at rising interest, they could also stem from simple transfers or wallet reshuffles, illustrating the complexities of interpreting such signals. Additionally, upcoming remarks from the Federal Reserve may introduce more volatility, as the market assesses potential shifts in monetary policy that could impact risk assets, including cryptocurrencies.