Dogecoin’s on-chain activity has surged, with average transaction sizes seeing a dramatic rise. On November 12, 2024, the average transaction size hit a seven-day peak of $33,411, while the seven-day average hovered around $11,960. This shift indicates a growing presence of larger transactions on the network, pointing to possible interest from institutional investors or cryptocurrency whales.
Volatility Climbs to Elevated Levels
Dogecoin’s market volatility has also seen a significant increase. The 30-day volatility reached 147%, reflecting heightened price fluctuations. Historically, such elevated volatility often signals the likelihood of sharp market movements, which could result in either a substantial rally or a major price correction.
Related article: DOGE Whales Accumulate 210 Million Tokens Amid Price Drop
Following a strong rally in early November, Dogecoin’s price reached approximately $0.40 before entering a consolidation phase. The asset faced resistance near $0.48, leading to a downward movement within a descending channel.
Source: CoinMarketCap
Key support levels include the 50-day EMA and the $0.35 price point. If Dogecoin fails to hold these levels, it could see a decline toward the 200-day EMA at $0.21.
Bullish Breakout Could Trigger a Rally
On a more optimistic note, Dogecoin could regain bullish momentum if it breaks above the descending resistance trendline. Traders are closely watching the $0.42 to $0.45 price range for signs of a breakout. A successful push above these levels might pave the way for a rally toward the psychologically important $0.50 mark. This price point serves as a critical milestone for DOGE’s upward trajectory.
Related article: Dogecoin Price Surge Predicted: Analyst Expects DOGE to Reach $3-$5 Soon
While Dogecoin’s growing transaction sizes and heightened volatility suggest rising market activity, concerns remain. The asset’s inability to sustain previous highs and its relatively low volume raise questions about the strength of any potential rally. A significant increase in trading volume could signal the start of a fresh upward trend.
Additionally, broader market conditions within the cryptocurrency sector will play a crucial role in determining if DOGE can reclaim its previous highs.
