Dogecoin Network Demand Surges: 1.33M Daily Active Addresses Amid 163% DOGE Rally

• Dogecoin’s active addresses have hit a record 1.33 million daily users, suggesting higher demand and increased adoption.
• While Dogecoin is trading above key support at $0.36, it faces resistance at $0.45. A breakout above this level could trigger further upside.

Dogecoin price’s strong 180% monthly appreciation has been accompanied by further price stability. Even though the price has adjusted a bit in recent days, the dog-faced meme coin is expected to continue its trend upward.

Dogecoin Network Activity Hits All-Time Highs

Active addresses of Dogecoin have seen a sharp spike to a record of over 1.33 million daily users. Rising network engagement depicts higher demand and explains an optimistic scenario for the meme crypto. In the past, increases in active address numbers have been correlated with upward price action as it demonstrates stronger interest from investors and increased uptake of the use of the asset.

Courtesy: Santiment

Transaction volume on the Dogecoin network has also continued to increase. This increase in activity signifies the involvement of more users, which further strengthens the DOGE price’s future trajectory. In similar previous events, increased network activity was eventually coupled with price gains, which may imply additional upward movements.

One such indicator, Dogecoin Price Daily Active Addresses Divergence, is showing substantial buy conditions. The prices are going up along with the participation. This is a sign of healthy market dynamics for the King of meme coins.

Courtesy: Santiment

Dogecoin Price Technical Analysis

Trading at a level above significant support at $0.36, Dogecoin price needs to break the resistance at $0.45 and drive it into becoming a new base. Such a breakout can make this level the support for further upside, per the CNF report.

However, failure of the support level at $0.36 may drag Dogecoin to $0.32. Moreover, in the worst-case scenario, the DOGE price could slump to $0.28. Furthermore, breaking below $0.28 will negate the present bullish bias and form a basis for further downward momentum.

Courtesy: TradingView

Nonetheless, it’s worth noting that the Dogecoin price’s upside is in tandem with overall market momentum. Recently, the ongoing upward trend for Bitcoin price has made room for buying pressure on altcoins. Moreover, the DOGE meme coin has also seen solid investor sentiment and increased market volatility.

Another factor driving enthusiasm for Dogecoin is Elon Musk’s influence. Musk’s endorsement, along with rising utility and demand in the market, sustained its lead in the last few weeks, reported CNF.

Dogecoin’s price will be influenced more so by its ability to hold support levels and the crypto market conditions. High activity on the network, for instance, along with unwavering investor interest, remains a significant influencer in its performance.

However, currently, the DOGE price is struggling with losses albeit minor. In the past seven days, the dog-faced crypto has lost nearly 4% in value. Moreover, as of writing, the Dogecoin price dropped 0.64% to $0.3878 on Thursday, November 21.

Also, the derivatives market shows a negative picture. According to Coinglass data, DOGE open interest fell by 3.51% to $3.09 billion. Additionally, long liquidations hit a whopping $15.72 million, signaling increased sell pressure and a bearish sentiment among traders. Whilst, short liquidations, although significant, accounted for $7.20 million, falling short of long liquidations.