Dogecoin is the leading meme cryptocurrency and is seeing some activity. For the first time, dormant coins have started moving after the cryptocurrency slumped 19% from its December 6 high of $0.48. This could be a sign of a probable turnaround for DOGE, as increased coin circulation often indicates bullish momentum.
The Mean Dollar Invested Age of Dogecoin is in the spotlight-a metric that measures the average age of coins by their purchase price. DOGE’s MDIA has declined to 370 days, which is a 31% drop in the last eight weeks. This suggests that coins held for a long time are being moved back into the market, boosting network activity and fuelling positive sentiment.
This is in line with a bullish outlook, according to blockchain analytics platform Santiment. DOGE’s funding rate on cryptocurrency exchanges also remains positive at 0.003%. A positive funding rate shows that traders betting on price increases are paying those expecting a decline, reinforcing optimism for a price recovery.
DOGE trades above the Super Trend indicator on its technical charts, which means dynamic support at $0.34. The continued upward move might take DOGE close to the previous high of $0.48. In such a scenario, a decisive break below $0.34 might extend the recent slide further toward $0.31.
With network activity rising and traders remaining optimistic, the next move by Dogecoin will be closely watched. To re-conquer the peak or another pullback? The coming days might prove to be crucial.
