Will Dogecoin Price surpass beyond $0.1 in 2023?

Key Takeaways:

• The Dogecoin price is appearing more or less stagnant but has been maintaining an ascending consolidation since the start of the month
• The bulls and the whales appear to have shifted their focus to other tokens which may hamper the token’s growth in the coming days
• The involvement of the miners has surged while the buyers & sellers count remain largely flay indicating a drop in the volatility 

Dogecoin has been the most popular token since its displayed a monstrous rally in 2021. Woefully, since then, the token is unable to make larger moves, except in the times when Tesla & Twitter CEO, Elon Musk mention anything about DOGE. Currently, the price has maintained an ascending trend since the beginning of the month but has been failing to surpass the crucial $0.08 mark. 

However, the upcoming months may certainly not be the same as the platform has taken a giant step in terms of mainstream adoption. One of the lead Dogecoin developers, Mitch Lumin, has introduced a brand new libdogecoin model 0.1.2 following a number of teases. This step may enhance the accessibility for the non-developers within the community. 

Meanwhile, Elon Musk’s silence over Dogecoin has kept the investors in deep thought as the future of the price appears to be misty. Additionally, the bullish market sentiments are also failing to lift the price beyond $0.1. Hence, the upcoming trend continues to remain misty as the DOGE price volatility and volume have been hampered to a large extent.
Read More: Cardano vs Dogecoin

Dogecoin Technical Overview

Source: Tradingview

• The dogecoin price has been trading under acute bearish pressure ever since the price dropped from interim highs of around $0.16
• After a couple of failed attempts to surpass $0.1, the bulls appear to have exhausted largely, keeping the price consolidated below $0.08
• The price is currently facing acute bearish action as the prices have been trading almost flat following a drop in the buying volume
• Moreover, MACD is closer to flashing a sell signal which may drop the price below $0.07 as RSI is also bearish, giving an opportunity for the bulls to enter

Dogecoin Token On-Chain Analysis

Dogecoin Hashrate

Source: Coinmetrics.io

The hash rate is nothing but the computational power required to validate a transaction and add the block to the blockchain. The hash rate indicates the involvement of the miners to validate a transaction over the network. The more the hash rate, the more decentralized the network may be which may prevent the network from any illegal activities. Besides, a drop in hash rate indicates lesser participation of the miners which raises the possibility of a 51% attack over the network. 

Presently, the hash rate is at its highest point indicating huge participation among the miners and hence the increase in the value may also be expected. However, until the traders knock in the token’s volatility may certainly not rise. Hence, compelling the price to consolidate within a narrow trend for a long time. 

Additional Read: Shiba Inu Price Prediction 2023

Dogecoin Token Active Address Count

Source: Coinmetrics.io

The active address count indicates the number of addresses actively interacting with the platform to set up any trade. Each address either buying, selling, or swapping addresses is considered but only once per day. The metrics help to determine the demand for the platform which rises with a jump in the daily active address count. 

Presently, the active address count has dropped and maintains a stagnant trend. However, the number of addresses interacting is between 50K to 60K which indicates huge traffic over the platform. However equal participation of the buyers and sellers has the price consolidated between narrow trends. 

Dogecoin MVRV Ratio

Source: Coinmetrics.io

The MVRV is a ratio that compares the current market capitalization of the token to its realized market capitalization to get the fair value of the token. If the current price is above the fair value then the price is overvalued, meanwhile, if the price is below the fair value then the price is said to be undervalued. Overvalued price raises the possibility of a bearish pullback as the traders tend to extract the profit at higher rates, while an undervalued token may attract huge liquidity as it flashes the possibility of a bullish rebound. 

Presently, the MVRV ratio is in the positive range but remains below 1, indicating the price is gaining value but has not yet reached the overvalued range. Hence the traders may influx some liquidity that could raise the price slightly high. 

Concluding Thought

Dogecoin price more or less appears largely stagnant despite the MVRV ratio displaying the possibility of a bullish breakout. However, a rise in the hash rate also indicates the price remains within a bullish region. Woeful, the active address count remains flat but within positive regions, indicating high trading activity. Therefore, the price is believed to be impacted largely in the coming days.