[{"category":{"name":"BitScreener Exclusive","exported_url":"bitscreener-exclusive"},"id":"dde2810a-2e5f-4840-b5a3-f02eaf5387c9","updated_at":"2024-05-07T03:43:51.522752+00:00","account":{"firstName":"Mason","lastName":"Thompson"},"description":"Dogecoin (DOGE) has succeeded in taking center stage. In fact, the data indicates that DOGE has seen an unparalleled spike in network activity, its price increased by 13% in 24 hours due to the hype around it.","sapo":"Dogecoin, the Shiba Inu-themed cryptocurrency that started as a joke in 2013, has been defying expectations. Once dismissed as a mere "memecoin," Dogecoin has seen a sharp surge in popularity and network activity in recent days.","title":"Is the surge in new 28,000 Dogecoin addresses a buy signal for traders?","content":"

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According to IntoTheBlock, Dogecoin has recently experienced a surge in new demand, adding an incredible 28,000 new addresses in just one day. Coupled with increasing network activity, the price of Dogecoin has significantly skyrocketed, gaining 13% in 24 hours.

DOGE Reaction

Increased network activity often precedes a price increase for that asset. However, this was not the case with DOGE until yesterday. The sustained demand this week has not been able to create any significant price jumps.

At the time of recording, DOGE is trading at $0.16. According to CoinMarketCap, the price is up 12% for the week, with most of that occurring in the past 24 hours. DOGE's modest 7-day price recovery mirrors the overall market decline during that period. In fact, the low trading volume recorded during the period in question pushed the cryptocurrency market capitalization below $2.3 trillion on May 1st before recovering.

However, DOGE's 24-hour price increase is a sign of optimism.

In addition, according to Santiment, DOGE's weighted sentiment is now ready to cross the center line in an upward trend. This metric tracks the general sentiment of the crypto market. When it returns a value above 0, market sentiment is positive. Conversely, market sentiment is generally pessimistic when its value is below 0.

At the time of writing, DOGE's weighted sentiment is -0.348. The value of this metric will increase if trading activity increases and DOGE extends its gains in the short term.

Weighted sentiment and Price of DOGE (30d)

Source: Santiment

The Time Has Come

This metric is evaluated on a 30-day moving average and is currently returning a value of -12.83% at the time of recording.

MVRV Ratio of DOGE (30d)

Source: Santiment

MVRV tracks the ratio between an asset's current market capitalization and the average price of each coin.

When its value is above 1, the asset's market capitalization is significantly higher than the price at which most investors bought in. When this happens, the asset is considered to be overvalued.

On the other hand, when it returns a negative value, the asset is considered to be undervalued because its market capitalization is lower than the average purchase price of all tokens in circulation.

Traders interpret a negative MVRV ratio as a signal to "buy the dip" in anticipation of potential price increases.

"Doge Activity Is Spiking!"

According to a tweet by IntoTheBlock, Dogecoin network activity has been on the rise, with a significant increase in new Dogecoin addresses this week. On May 2nd, 28,000 new addresses were created, marking a 102% surge from the monthly low set on Monday, April 29th.

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On-chain data further highlights the growth in the number of non-zero addresses for Dogecoin. Santiment revealed that the number of non-zero Dogecoin wallets has increased by 27% over the past six months, reaching a total of 6.6 million wallets.

Daily Active Addresses (DOGE)

Source: Sentiment

This surge in non-zero wallets suggests renewed interest and engagement within the Dogecoin community.

The price of Dogecoin has jumped 13% in the past 24 hours, driven by the increasing demand and overall positive sentiment towards cryptocurrencies. This price increase demonstrates the impact of network growth on Dogecoin's value, as increasing adoption often correlates with upward price momentum.

Dogecoin Price Rise Coincides With The Broader Market Rebound

The DOGE price surge coincides with the broader cryptocurrency market's rebound following the release of weaker-than-expected jobs data. Coins recovered on Friday, May 3rd, led by gains in Bitcoin (BTC), raising hopes that the worst of the downturn may be over.

The U.S. economy added 175,000 jobs in April, below the expert estimate of 245,000 and the prior month's increase of 315,000. The latest nonfarm payrolls data also showed the unemployment rate ticking up to 3.9% from 3.8% in March.

As a result, Dogecoin has been on a strong run, extending its recovery from its May 1st low of $0.1198. At the time of writing, Dogecoin is still maintaining its gains, up 13% in the past 24 hours to $0.15.

Conclusion

In addition to this resurgence of interest in Dogecoin, other elements have also played a role in its current surge. In fact, this rise is in line with a bullish trend in the cryptocurrency markets, which is being supported by less optimistic than anticipated US economic data. With only 175,000 new jobs created in April, the US saw poor job creation compared to analysts' estimates.

Investors have placed bets on a slowing in the Federal Reserve's rate of interest rate hikes in this particular environment. a viewpoint that has increased risk appetite and benefited riskier assets like cryptocurrencies. With the help of this positive dynamic, Dogecoin's price surged, rising by almost 13% on May 4th to $0.15.

Dogecoin has evolved from a simple "crypto meme" to a major force in the world of digital currencies. Even with the challenges, it succeeds because of its passionate community and growing traction.

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","tags":[{"tag":{"tag":"DOGE","id_tag":"doge"}}],"image":{"fileName":"dogecoin-meme-coins.jpg"}}]

Is the surge in new 28,000 Dogecoin addresses a buy signal for traders?

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