Journalist
Posted:
- Inactive DOGE tokens now interact after a long period of inactivity.
- Dogecoin price may soon break through $0.07.
Some Dogecoin [DOGE] Dormant addresses have suddenly become light sleepers, according to a recent post from on-chain data provider Santiment. Using the Age Consumed metric, Santiment noticed that many old wallets have moved their coins.
🐶 #Altcoins are back in the green today, and data suggests there has been a huge amount of aging $DOGE Get out of stagnant wallets today. Keep an eye on this, as well as the fact that there are 121 new 1M+ #Dogecoin wallets have popped up in the past month. https://t.co/OjXvbTEEf9 pic.twitter.com/zHMyiqBI7c
— Santiment (@santimentfeed) November 22, 2023
At the time of writing, Dogecoin’s Age Consumed statistic had reached 56.97. Spikes in this statistic confirm that a large number of tokens have been moved after being inactive for a long time.
Old school wants to have a share in the trend
Moreover, it was uncertain why these ancient coins decided to wake up. However, from AMBCrypto’s previous analysisthe meme shows signs of a rally.
Combined with being rising network activity, there is a chance that these dormant addresses will not want to be left out of the potential uptick.
However, it seemed that many of these moving coins were not low in terms of usage in transactions. This is due to AMBCrypto’s evaluation of one-day DOGE circulation showed the metric was declining.
At the time of writing, circulation had fallen to 1,899. As for the price action, the decrease in circulation means that DOGE could escape the selling pressure. As mentioned earlier, there have been talks about a likely uptrend of Dogecoin.
Source: Santiment
But the coin has not fulfilled the predictions and has changed hands for $0.075 at the time of writing. Should circulation continue to decline and DOGE buying pressure increase, the coin could follow the broader altcoin small increase.
Negative sentiment amid bullish bets
Meanwhile, Dogecoin’s tight trading range appears to have generated unfavorable reviews from a larger portion of the market. This inference was drawn from the weighted sentiment, which dropped to -0.116.
Weighted sentiment increases when social volume is high and the majority of the message surrounding a project is positive. On the other hand, weighted sentiment decreases when a larger proportion of messages appear pessimistic.
For Dogecoin, it was the latter, despite a wave of positivity on November 20.
When it comes to the funding rate, traders did not allow DOGE’s price action to affect their price conviction that the next important stage is worth the medal.
At the time of writing, DOGE’s funding rate on the Binance exchange was 0.01%. Funding rates are determined by the fees paid between short and long positioned traders.
Being long means betting that the price of an asset will rise. This ensures a positive financing percentage.
Source: Santiment
Is your portfolio green? Check the DOGE profit calculator
In short, predicting that the price will fall, which is reflected in a negative financing interest rate.
As it stands now, DOGE can continue to trade around $0.07. However, there is a chance of a major breakout that could pull the cryptocurrency higher.
