Dogecoin’s On-Chain Metrics Unravel Intense Bear & Bull Duel

As Elon Musk mulls DOGE for XPayments, a deeper look into the on-chain metrics explains the ambiguous trader sentiment.

Shiba Inu puppy watching a fight between a golden bull and a bear.
Created by Gabor Kovacs from DailyCoin
  • Dogecoin’s active addresses soar upon rising XPayments expectations.
  • Several on-chain indicators point to trader indecision since Q4 of 2023.
  • Dogecoin’s price dip below $0.08 ignites a flurry of new DOGE holders.

Dogecoin (DOGE), the largest Proof of Work (PoW) network in the crypto sphere besides Bitcoin (BTC), is gaining traction on social media for the highly-anticipated integration of DOGE into XPayments. While the peer-to-peer monetary system is yet to be released, the freshly created XPayments account on Twitter has already garnered 124.9K followers.

Elon Musk reinstated his vision for X in a recent interview with Ben Shapiro, claiming that the in-built financial ecosystem should arrive sometime this year. The developments of Musk’s social platform heavily affect the DOGE price movement, but important technical factors must be considered to understand where Dogecoin is heading next.

Can Bulls Take DOGE Back from Bears?

Delving deeper into the on-chain metrics for DOGE, cryptocurrency bulls and bears have been facing an intense battle since October 25, 2023. In technical terms, a bull purchases over 1% of the total trading volume in 24 hours, while a crypto bear sells over 1% of the total traded daily volume.

The blockchain data analytics enterprise IntoTheBlock reported a close score of 112:111 in this metric in the last seven days. With DOGE’s trading activity increased since October 2023, the face-off between bulls and bears has been historically favorable for Dogecoin’s price, as the top dog coin reached its yearly high of $0.101799 on December 11, 2023.

However, Dogecoin retraced December’s gains to trade below a crucial support cluster of 8 cents, currently changing hands at $0.07816, according to CoinGecko. Consolidating for the past week, Dogecoin has to come to terms with the 15% monthly deficit. 

As the wait for Dogecoin’s possible inclusion into X’s financial system continues, the memecoin has soared in active addresses since January 24, 2023, as traders contemplate their next move before the next update from XPayments.

On the Flipside

  • Dogecoin’s new wallet addresses grew by 197.88% in the last 7 days, meaning that crypto traders see Dogecoin’s plunge below the $0.08 support cluster as a favorable entry point.

Why This Matters

Dogecoin is one of the most socially powerful alternatives to Bitcoin due to its huge community and similar ways of operating via the Proof of Work consensus.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.