Daily active users of Dogecoin (DOGE) have seen a significant surge of 32% over the last 24 hours.
What Happened: According to IntoTheBlock data, the number of daily active addresses, which are defined as addresses that have made at least one on-chain transaction in the past day, reached a total of 55,444.
This metric is often used to track network activity over time. A rise in daily active addresses typically indicates an increase in blockchain usage, while a decrease suggests a reduced network demand.
There is often a correlation between the number of daily active addresses and price activity, making it a potential leading indicator for price action.
The price of Dogecoin has been on a rebound since Friday, following three consecutive days of decline. At the time of writing, Dogecoin was up 2.10% in the last 24 hours, trading at $0.101.
Also Read: Massive Dogecoin Moves Worth $50 Million Each Spotted On Robinhood
Market observers are closely monitoring the correlation between daily active addresses and price movements. A strong correlation could suggest that active addresses are likely to follow the price rather than using the crypto asset.
If the rebound sustains, buyers may aim to push the Dogecoin price above the daily SMA 50 at $0.115. A break above the daily moving average could trigger a new uptrend for Dogecoin.
Why It Matters: The surge in Dogecoin’s daily active users is a significant development for the cryptocurrency. The increase in active addresses could potentially lead to a rise in demand for DOGE, which may subsequently impact its price.
The correlation between active addresses and price movements has been observed in the past, and a continuation of this trend could indicate a positive trajectory for Dogecoin’s price.
However, it’s important to note that while the increase in active users is a positive sign, it does not guarantee a price increase.
The cryptocurrency market is highly volatile and influenced by a variety of factors. Therefore, investors should monitor the situation closely and make informed decisions.
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