Dogecoin (DOGE) Price Analysis & Prediction: DOGE Market Heats Up as Volatility and Transaction Sizes Increase

Key on-chain metrics for Dogecoin have significantly increased, indicating increased activity in spite of price consolidation.

Key on-chain metrics for Dogecoin have increased significantly, indicating greater activity despite the price consolidation. Over the last week, the average transaction size has increased dramatically, reaching a seven-day high of $33,411 on Nov. 12, 2024, and continuing to hover around a seven-day average of $11,960.

This dramatic increase suggests that larger transactions dominate the network, indicating increased activity from institutional investors or whales. Dogecoin's volatility has also increased significantly, reaching 147% on the 30-day chart.

This indicates high price volatility, often preceding sharp market movements. In the past, either significant pullbacks or powerful rallies have preceded periods of elevated DOGE volatility. A critical phase can be seen on the market side of the DOGE price chart. Dogecoin had a significant upswing in November and is now trading at about $0.40. The asset has since consolidated within a descending channel after encountering resistance close to $0.48.

The 50-day EMA and $0.35 are both clear support levels. A decline toward the 200-day EMA at $0.21 might happen if DOGE is unable to maintain this level. Dogecoin has an opportunity to recover its upward momentum on the bullish side if it breaks above the trendline of descending resistance. Traders should keep a close eye on the $0.42 to $0.45 range for indications of a recovery.

There is a chance that a rally toward the psychologically significant $0.50 level could be initiated by a successful breakout above $50. The market is heating up for Dogecoin, as evidenced by growing volatility and larger transaction sizes. But there are issues given the asset's lack of volume and inability to maintain its previous highs.

Any sizable volume inflow above current levels may be a sign of the start of a fresh rally. A major factor in determining whether DOGE can reach its previous highs will be the state of the larger cryptocurrency market.