The crypto market is usually punctuated by sudden and unpredictable fluctuations. However, some attract particular attention, especially when they concern assets like Dogecoin. Considered at its beginnings as a simple “meme” crypto, Dogecoin has over time managed to establish itself among the major players in the sector. But after months of stagnation, both in terms of price and activity on the blockchain, a sudden resurgence of interest seems to be on the horizon. Last week, the volume of daily transactions reached unprecedented peaks, which could well indicate a resurgence of the craze for this crypto.
A sudden explosion of transactions on the Dogecoin blockchain
Last week, Dogecoin saw a significant spike in daily transactions, with 1.93 million volumes. This figure represents an increase of over 100% from the previous week, making it the most active since July 2024. Such a surge in the cryptocurrency comes after nine consecutive weeks of low activity on the blockchain. “This resurgence in activity is a breath of fresh air for the Dogecoin community, after several months of lethargy,” precise a report from IntoTheBlock. Indeed, since March, the Dogecoin network had seen its activity slow down, with volumes well below its historical peaks.
The surge in these transactions coincides with an attempt to stabilize Dogecoin’s price around $0.104. Despite this surge in network activity, DOGE’s price has yet to show any clear signs of progress. The resistance at $0.104 appears to be a major sticking point for investors. Analysts believe that breaking this barrier could pave the way for a new rally, but it remains a difficult threshold to surpass for now. In the short term, markets are closely monitoring whether this increased activity will translate into a sustainable price increase.
What are the challenges for the future of Dogecoin?
Despite the increase in transactions, Dogecoin remains below its past performance levels, including February and March 2024 when the blockchain regularly processed over 10 million transactions per week. While the current surge is significant, it is still short of previous highs. Additionally, resistance around $0.104 is an additional hurdle, as around 23,400 addresses are still holding DOGE at a loss, and a surge to this level could trigger a selloff. This would dampen any bullish momentum.
Dogecoin’s future will largely depend on its ability to maintain this momentum. If activity on the blockchain continues to increase, it would signal renewed interest from investors, particularly those attracted to low-cost assets. However, technical hurdles and psychological resistances remain significant challenges to overcome.
In short, the new surge in transactions on the Dogecoin blockchain could well mark the beginning of a new chapter for the crypto. However, several factors, such as resistance at $0.104 and $0.110, as well as fragile investor sentiment, suggest that this surge could be fleeting.
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