Despite being the most popular meme coin in the cryptocurrency market at the moment, Dogecoin’s price has not performed as well as investors had hoped. Instead of following the overall trend of all coins in the space to yearly highs, prices continued to stagnate. So far, Dogecoin has proven to have launch failures, but that could soon change.
Dogecoin price is still stagnant.
As of 2023, the prices of cryptocurrencies such as Bitcoin and Ethereum have reached annual highs, but Dogecoin has had difficulty achieving the same level of performance. Despite the price’s significant rise from its 2023 low of $0.058, it continued to see only small gains while other assets were seeing double-digit gains.
In early December, several developments pushed the DOGE price above $0.1, a yearly high, but not as high as its competitors. These announcements included actual Dogecoin being sent to the moon in December and the DOGE-1 space mission expected to take place in January 2024.
However, as excitement over these events died down, DOGE prices again underperformed. Even after Dogecoin’s biggest rival, Shiba Inu, rose 20% on Sunday, Dogecoin failed to gain more than 4% and fell once again.
This slow performance of Dogecoin has been especially worrying for investors who have been waiting forever for a price launch. However, according to Galaxy analyst Zack Pokorny, this could soon change if several indicators increase.
DOGE price succumbs to bear pressure | Source: DOGEUSD On Tradingview.com
DOGE could soon see a huge reversal
Pokorny highlighted Dogecoin’s poor performance over the past two months in a new report published on the Galaxy website. However, there have been some changes in the asset that suggest there may be a change in direction going forward.
One of them is the fact that Dogecoin spot trading volume has increased dramatically, rising to the third highest level of the year. Altcoin spot trading volumes have also maintained these high values since they were first recorded in November, but have yet to hit new annual highs.
Next is the increase in transactions on the network and the recent rapid increase in the block size being created. This can be attributed to the Doginals or DRC-20 tokens, which have recently received rave reviews in the cryptocurrency industry. “Non-traditional data points such as block size reveal new catalysts for DOGE that did not exist in past cycles,” explains Pokorny.
There were also many new users on the Dogecoin network, with non-zero account balances increasing by 5% in 30 days and sending accounts also increasing. “This is a new and rapidly growing interest in DOGE and a positive sign for what is possible on-chain,” the analyst said.
Pokorny explains that this suggests demand for meme coins is growing, as DOGE supply is aging due to an influx of new users. Given this high increase, analysts expect the upcoming DOGE space mission to generate more enthusiasm.
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