Two one-chain metrics for the next step by Dogecoin

The central theses

• Dogecoin continues to consolidate in a narrow area that is becoming increasingly narrower over time.
• A daily candle closure outside the price range of $ 0.17 could determine your course.
• The course development of Doge shows that bulls may have the upper hand.

Dogecoin seems to repeat the price campaign that it has experienced since the beginning of the year. Although the purchase pressure is not high enough to break out, several on-chain indicators can help to anticipate the next significant price movement of the assets.

Dogecoin stagnates

The fate of Dogecoin is based on two key indicators.

The original Meme cryptocurrency has a memorable year. At the beginning of May he reached a new all -time high of $ 0.74 in a frenzy phase on the market. Despite the low volatility of the past few months, the asset has had a return of 4,500 %since the beginning of the year.

The daily-type of Doge shows that he often consolidates himself over longer periods of time before breaking out. These stagnation periods are characterized by the formation of descending triangles, which lead to exponential price movements.

For example, Dogecoin developed this type of technical pattern for 26 days before it increased by 936% at the end of January. A similar prize campaign took place in early April after the asset consolidated for two months.

Now the tenth largest cryptocurrency after market capitalization seems to develop the same bullish continuation pattern. Dogecoin's price has reached a number of lower highs since the beginning of May, while the support brand of $ 0.17 prevents a steep correction.

Cut through the hypotenuse of the descending triangle at 0.26 USD could trigger an exponential price movement towards the new all-time high.

Bullic signs to be monitored

Some of the most important price movements that Dogecoin experienced all year round were supported by celebrities. Such behavior indicates that the interest of retail must increase so that Doge continues to advance. Nevertheless, some important on-chain metrics can help determine whether the purchase pressure increases.

The number of large transactions in the network with a value of more than $ 100,000 can serve as an indicator of the activities of institutional actors and whales. A clear increase in large transactions could indicate that wealthy investors begin to position themselves for a new bull run.

Currently 1,560 large transactions take place in the Dogecoin network. The number of large transactions reached a high on September 7 at 2,520; An increase of 38 % could indicate that whales begin to take control of the price movements.

If this key figure begins to record a number of higher highs, the chances would favor the bulls.

It is also important to pay attention to the number of addresses newly created daily to determine whether small investors join the network.

Network growth is often regarded as one of the most accurate price forecasts. In general, a steady increase in the number of new addresses created on a certain blockchain leads over time at rising prices.

A new high of 22,000 new addresses that join the Dogecoin network per day could signal the beginning of a new upward trend. Under such unique circumstances, traders must wait for a higher high of this on-chain index before they enter into positions to confirm that the pressure to buy increases.

daily active addresses

While an increase in the number of large transactions and new daily addresses in the network would confirm the interest bullish outlook, a daily candlestick, which is under the x-axis of the symmetrical triangle, would invalidate it. The transaction history shows that after the loss of such a critical level of support, Doge would have little resistance on its way down to $ 0.08.