Leading cryptocurrency analyst Ali Martinez spotlighted a sharp spike in Dogecoin’s on-chain activity on Saturday, suggesting increased volatility ahead.
A Breakout In The Works?
In an X post, Martinez highlighted that active addresses have surged to nearly 50,000 since the start of July, referencing data from on-chain analytics firm Glassnode.
An active address is any unique wallet address that participates in at least one on-chain transaction within a given time period.
“Something is brewing,” the analyst said, signaling growing usage and interest.
Buy Or Sell?
The Moving Average Convergence Divergence indicator, which compares the 12-period and the 26-period exponential moving averages, flashed a "Buy" signal for $DOGE, according to TradingView.
To the contrary, the Bull Bear Power indicator, which measures the strength of buyers and sellers, flashed a “Sell” signal. The Relative Strength Index hovered in the “Neutral” territory.
Whales Increase Long Exposure
Interest in $DOGE from derivatives traders also strengthened. Long positions among Binance’s top traders—those in the top 20% by margin balance—rose sharply this week relative to short positions, according to Coinglass.
Additionally, $DOGE’s open interest rose 7.6% over the week to top $1 billion, signaling an influx of new money in the speculative market
Price Action: At the time of writing, $DOGE was exchanging hands at $0.07727, down 1.78% over the last 24 hours, according to data from Benzinga Pro. The memecoin has lost 34% of its value year-to-date.
Photo Courtesy:ihrinmoisuc on Shutterstock.com
