In a significant milestone, Dogecoin (DOGE) has exceeded five million wallet addresses with a balance, aligning with a surge in user activity. Over 168,000 active addresses in the last day mark the highest level of involvement since March 2022.
While the total number of addresses with a balance provides a positive outlook, concerns about ownership concentration persist. Hodlers, accounting for 71% of Dogecoin holders, reflect a community committed to long-term investment. However, data reveals that fewer than 5,000 addresses control over 80% of DOGE's supply, raising questions about potential market manipulation.
Dogecoin's recent spike in daily transactions, surpassing Bitcoin (BTC) and Ethereum (ETH), has sparked interest. Analysts attribute this surge to increased attention from whales and institutional investors. Additionally, the use of "Doginals" and altcoins on the DOGE chain contributed to heightened transaction activity, showcasing the community's creativity.
DOGE's market capitalization has risen by 14%, reaching almost $11 billion this month. However, amidst positive developments, cautionary notes have been sounded. A major Dogecoin development contributor, Mishaboar, issued a warning about potential scams, emphasizing the risks associated with rapid growth and the need for user vigilance.
Dogecoin's recent price movements and indicators offer a nuanced perspective. Despite a 4.89% increase in the last 24 hours, reaching $0.0809, the Relative Strength Index (RSI) suggests a potential short-term decline. The RSI, currently below 60, may reach 50 in the coming days, signalling a possible correction.
However, the 30-day average continues to outpace the 200-day average. This divergence indicates that Dogecoin is in the midst of a growth phase, with sustained upward momentum. The support level at $0.070, a crucial indicator of stability, has risen in recent weeks, preventing DOGE from falling below this key threshold.
Despite the short-term uncertainty suggested by the RSI, the overall technical indicators and support levels point towards a potential continuation of the upward trajectory. Dogecoin's trading volume, currently around $600 million, reflects ongoing market interest.
Dogecoin's journey is characterized by milestones, growing adoption, and community resilience. The surge in wallet addresses and daily transactions reflects a vibrant community. The system's ability to adapt and create innovative solutions is inspiring, contributing to Dogecoin's unique position in the crypto space.
The Dogecoin community's emphasis on long-term holding is a testament to collective confidence in the coin's potential. While market dynamics remain unpredictable, the community's resilience and innovative spirit suggest that Dogecoin could play a significant role as a medium of exchange.