Dogecoin's network activity has surged so far, according to IntoTheBlock.
Elon Musk's continued support and hints of incoming $DOGE integrations are driving its price action.
Several technical indicators show that Dogecoin is ready to initiate a major rally.
The memecoin could see a major price increase if it can maintain the $0.1 price level.
Dogecoin, the memecoin king, has recently made headlines with promising price action.
A huge part of this is fueled by the rebound of the altcoin market and Bitcoin's break above the $62,000 mark.
According to data from CoinMarketCap, the cryptocurrency now trades at around $0.1, has a stable market cap of around $15 billion, and has healthy volumes of around $706 million.
However, amidst all of these promising signals, there might be strong indications that a price surge is incoming.
Here are all the arguments for an incoming $DOGE pump.
Increasing network activity is one of the biggest drivers of Dogecoin's price action lately.
Interestingly, most of this price action is coming from none other than the "doge father," Elon Musk.
Musk, who has been a long-term supporter of Dogecoin since 2021, has hinted several times that the memecoin could soon be used for payments in some of his companies like Tesla and Starlink.
As per IntoTheBlock, Dogecoin processed over 1.93 million transactions only last week, which is its highest level of activity since July.
This transaction surge shows increasing interest in the memecoin's PoW blockchain, which has processed over 350 million transactions since its creation. Furthermore, the network has more than 7.4 Million on-chain holders, showcasing massive investor interest.
Indicators show that Dogecoin might be gearing up for a major upswing.
For example, more IntoTheBlock data shows that the cryptocurrency has a staggering 74% of its holders in profit.
This stands in contrast to a mere 20% running at losses and 6% at break even.
Dogecoin’s price metrics
More than half of its holders have also been holding for longer than a year, with a meager 2% holding for less than a month.
Finally, investors have made around $873 million worth of transactions greater than $100,000 over the last seven days before writing, showing great interest in holding this cryptocurrency.
According to the weekly charts, Dogecoin has been echoing its price action from previous bull runs, as highlighted in a recent tweet by Cantonese Cat, a Dogecoin analyst.
Dogecoin is echoing past price action.
The analyst pointed out that the cryptocurrency has been consistently retesting the 100-day SMA as a support level.
The charts also show Dogecoin is finalizing a breakout and rebound from the falling wedge below.
Dogecoin’s price action
If Dogecoin confirms the $0.1 price level as support, we should see a rebound and price explosion towards the $0.15 - $0.2 range very soon.
Furthermore, the growing hype around a Dogecoin integration with Elon Musk-backed platforms like X, Tesla, and Starlink could drive further demand.
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