Dogecoin Skyrockets 32% in Active Users, Will DOGE Price Follow?

According to IntoTheBlock data, dog-themed cryptocurrency Dogecoin (DOGE) has seen a 32% surge in daily active addresses over the last 24 hours.

Daily active addresses, which refers to addresses that made one or more on-chain transaction(s) in the past day, came to 55,444.

Daily active addresses are a useful measure for monitoring network activity over time. In general, increasing daily active addresses indicate increased blockchain usage, and decreasing daily active addresses indicate decreased network demand. Daily active addresses tend to be correlated with price activity. As a result, daily active addresses can often be added as a leading indicator for price action.

Additionally, it is worth monitoring how closely together daily active addresses and price movements are as a strong correlation points to the likelihood of active addresses following the price rather than using the crypto asset.

Will Dogecoin price follow?

The Dogecoin price was extending its rebound initiated on Friday after declining for three consecutive days.

At the time of writing, Dogecoin was up 2.10% in the last 24 hours to $0.101, having hit intraday highs of $0.102 in Saturday’s trading session.

If the rebound sustains, buyers may seek to push the Dogecoin price above the daily SMA 50 at $0.115. If they can do so, Dogecoin might gain momentum and reach the daily SMA 200 at $0.136. A break above the daily moving average might kick-start a fresh uptrend for the Dogecoin price.

On the downside, if the price falls below $0.10, it could imply that bears are attempting to gain control. There is little support at $0.09, but if this level fails to hold, the next halt will most likely be the support at $0.08.

In the past week, Dogecoin Core 1.14.8 was released, which includes important network code updates. The minor version release also included important bug fixes to the networking code.

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