The popular belief is that no news is good news. In the case of Dogecoin, a similar notion could be observed in the market, as the eighth alternate position faced strong psychological resistance at $ 0.305, but remained well above the $ 0.27 mark.
Dogecoin has shown low gains of late, and although market anticipation is waning, price-wise at least, there were some bright signs for Dogecoin’s trajectory. For example, the fact that DOGE recorded higher lows on the 12-hour chart was a huge relief for altcoin traders.
Additionally, Dogecoin investors broke through the $ 0.26 to $ 0.28 demand zone, which was a significant resistance barrier during June, and a strong support level from early May to early June. The next target of $ 0.35 can be reached if buyers come back strong.
Does development drive growth?
Lately, a point of concern has been the decline in Dogecoin development activity, which saw a vertical spike at the time of writing. However, by contrast, the number of open issues on Github dropped from 205 to 148 in the last four days. The issues help developers keep track of their work on Github and a drop in this number meant weakening development activity.
Also, DOGE’s social volumes didn’t increase much, despite the attention of Tesla CEO Elon Musk. A noteworthy achievement for the network was when its nodes recently went from 200 to 700+ as the next rate update was in the works.
Also, the Doge enthusiast who goes by the name “Doge Whisperer” pointed out that 205 computers were running the latest Doge update and more nodes were needed to update to 1.14.4. Musk marked it as “important” in his answer and the same caught the attention of the coin.
Nonetheless, Musk’s recent efforts to boost the price of the coin have been in vain and this move also did nothing for its price. At the time of writing, the total number of nodes on the Doge network was around 1,644. However, creating new nodes can further help protect the network and reduce transaction fees. At the time of writing, Doge’s average transaction fee was still above July to mid-August levels.
While development could fuel DOGE’s growth and an increase in development activity at the time of this writing painted a bullish picture for the coin, increased nodes could further boost the network.
Historical money inflows / outflows highlighted an upward trend, which meant there was an increase in the number of profitable addresses. While the same has been followed by a drop this time, as Dogecoin held its prices, the chances of a drop seemed slim.
Also, a steady increase in total addresses with balances meant that holders weren’t making a profit at such high prices, which is a lIt is the trend observed for Doge.
So while a rally above $ 0.367 is plausible, with the same number of bulls and bears for DOGE in the near future, the fight will continue. However, an insert active directions that experienced a steady decline could fuel a rally.
This is a machine translation of our English version.
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