Despite being the most popular meme coin in the crypto market right now, the price of Dogecoin has not performed as well as investors expected. Instead of following the overall trend of all coins in the space to new yearly highs, the price continued to stall. So far, Dogecoin has proved to be undergoing a failure to launch, but this could be changing soon.
Dogecoin Price Still Stalling
So far in 2023, the price of cryptocurrencies such as Bitcoin and Ethereum have rallied to new yearly highs, but Dogecoin has struggled to perform to the same extent. Even though the price has risen nicely from its 2023 lows of $0.058, it has continued to see only small gains when other assets have been seeing double-digit gains.
At the beginning of December, multiple developments also contributed to a rally that pushed the DOGE price above $0.1, a new yearly high, but barely as high as its counterparts. These announcements included the physical Dogecoin being sent to the moon in December, as well as the DOGE-1 space mission that is expected to take place in January 2024.
However, as the excitement around these events has subsided, the DOGE price has gone back to its lackadaisical performance. Even after Shiba Inu, which is Dogecoin’s biggest rival, rallied 20% on Sunday, Dogecoin did not see more than a 4% increase before falling back down once more.
This slow performance from Dogecoin has been worrying, especially for investors who seem to have been waiting forever for the price to launch. However, according to Galaxy analyst Zack Pokorny, this could change soon following a rise in multiple metrics.
DOGE price succumbs to bear pressure | Source: DOGEUSD On Tradingview.com
DOGE Could See A Massive Reversal Soon
In a new report posted on the Galaxy website, Pokorny highlights Dogecoin’s poor performance over the last two months. However, there have been some changes in the asset that have suggested that there could be a turn in the tide coming.
One instance of this is the fact that the Dogecoin spot trading volume has risen drastically, rising to its third-highest level this year. The altcoin’s spot volume has also maintained these high values since it first hit in November, although it is yet to see new yearly highs.
Next is the increase in transactions on the network, as well as a rapid increase in the block sizes produced recently. These can be attributed to the Doginals, or DRC-20 tokens, that have become the rave recently in crypto. “Unconventional data points like block size also exhibit new catalysts to DOGE that didn’t exist in past cycles,” Pokorny explains.
Additionally, there have been a lot of new users on the Dogecoin network, with accounts non-zero balances rising 5% in a 30-day period, as well as an increase in sending accounts. “This is a positive sign of renewed and rapidly growing interest in DOGE and what is possible on-chain,” the analyst stated.
Pokorny explains that since the DOGE supply is growing older with the influx of new users, it suggests that demand for the meme coin is rising. Given these high increases, the analyst expects that the upcoming DOGE space mission could spur more enthusiasm.