Dogecoin, a famous memecoin, is growing rapidly. The number of Dogecoin addresses produced keeps climbing and peaking. Increased network activity bodes well for Dogecoin, setting the stage for a price rise. Though the network is growing, Dogecoin’s price has been within a 3% range between $0.09 and $0.1. Different meme coins have survived and thrived on the market. However, Dogecoin has struggled to break $0.1, and on-chain transactions show a drop in optimistic investor purchasing power. The memecoin has an all-time-high of $0.73 and long-term predictions indicate it will touch $1 in the next bull run.

Dogecoin Traders Put 720 Million DOGE on Sale

Dogecoin has remained below the crucial $0.1 resistance level all week. In contrast, meme tokens like Shiba Inu (SHIB) and PEPE have grown by double-digit percentages during the same span, highlighting their performance differences.

Dogecoin rose 0.5% between December 16 and 23. SHIB has gained 10% and BONK 8%. The persistent quest to surpass $0.1 implies Dogecoin’s positive momentum is weakening.

On-chain data, like IntoTheBlock’s Aggregate Exchange Order Books visualization, highlights the negative view. The image shows that retail Dogecoin traders put 720 million DOGE in active sell orders on 10 major cryptocurrency exchanges like Binance and Coinbase on December 23. However, at current rates, DOGE demand is only 636 million, indicating a surplus supply of 84 million DOGE.

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The abundance of supply raises concerns about a negative market, as sellers may lower prices to compete for faster order fulfilment due to decreased demand. Market sentiment depends on demand-supply imbalances.

Bollinger Band Indicates Downturn Threat for Dogecoin

Dogecoin demand appears to be declining based on on-chain data. Dogecoin may fall in the next few days due to swing traders’ interest in Layer-1 altcoins. Pessimistic expectations require a break over $0.08, the initial support level.

Bollinger Band, a technical indicator, suggests a downturn. Given Dogecoin’s strong backing at the lower Bollinger Band at $0.088, a big dip below this mark might push it to $0.07 to $0.15. That pricing level hasn’t occurred since November.

Bears can defy this bleak prediction by regaining market dominance at $0.12. Due to the heavy selling pressure around the Bollinger Upper-band (Simple Moving Average) near $0.1, the week has been difficult. As the cryptocurrency sector continues, investors are closely following Dogecoin’s price and network activity.