Dogecoin’s daily transactions have been dropping since July 2023. DOGE’s price also declined by over 3% in the last 24 hours.
- DOGE’s Trading Volume plummeted along with its Weighted Sentiment.
- Most market indicators suggested that DOGE’s price might plummet further.
Dogecoin [DOGE] has witnessed a considerable drop in its network usage over the last few months. Earlier, the blockchain’s network activity witnessed a boost when its new Doginals were launched.
Now, when the heat has settled in, will a new update related to Doginals be any good for Dogecoin?
Will Dogecoin’s network activity recover?
Over the last few months, Dogecoin’s network usage has dropped considerably, which was evident from its daily transactions. As per Bitinfocharts, DOGE’s daily transactions, after spiking in July, went down under the 50,000 mark.
The chart has also remained near the same mark for more than a month now.
The blockchain earlier witnessed a massive surge in network activity when it released its Doginals. For starters, Doginals are fragments of Dogecoin—individual “Shibes” on the Dogecoin network—that are tagged with rich data, such as text or images.
The Doginals DRC20 standard allows Dogecoin nodes to inscribe each Shibe with data, creating a Doginal.
When the blockchain launched Doginals, its network activity surged, but things cooled down later. Now, there has been a new update related to the same, which can once again act as a catalyst for increasing the memecoin’s network activity.
Doge Labs recently announced that Version 1.0.11 of the Doge Labs Wallet went live on Chrome. The update might intrigue new users and, in turn, increase blockchain network activity.
Dogecoin is witnessing a price correction
Amidst this, DOGE’s price saw a massive decline. According to CoinMarketCap, DOGE was down by more than 3% in the last 24 hours alone. At the time of writing, it was trading at $0.05894 with a market capitalization of over $8.3 billion, making it the 9th largest crypto.
DOGE’s trading volume has also dropped over the last few days, suggesting that investors were not actively trading the memecoin.
DOGE’s Binance Funding Rate remained green during most of the days last week, meaning that investors were buying the coin at a lower price. Additionally, negative sentiment around the token was dominant in the market, which was evident from the dip in its Weighted Sentiment.
Things can get worse, as Dogecoin’s Bollinger Bands suggested that the coin’s price volatility might increase soon. Its Relative Strength Index (RSI) took a sharp decline.
On top of that, DOGE’s Chaikin Money Flow (CMF) also registered a downtick towards the neutral mark, increasing the chances of a continued southward price movement.
