DOGE on the Rise: Surging Volume, Social Dominance, and X Platform Hype Propel Momentum

Author : Elisabeth Louise | Published On : 23 Jan 2024

Dogecoin (DOGE) is showing signs of a potential price recovery, backed by positive on-chain metrics, a substantial increase in trading volume, and a rise in social dominance. The recent introduction of a dedicated payments account handle, Xpayments, by Elon Musk’s X platform has further fueled speculation around the wider adoption of DOGE as a form of payment.

On-chain metrics, specifically Santiment’s data, reveals a noteworthy surge in DOGE trading volume from January 1 to the present. During this period, DOGE's volume escalated significantly, surging from 298.68 million to 1.17 billion on January 21. This surge in volume indicates a growing importance and demand for DOGE among market participants, potentially signaling a revival for the cryptocurrency.

In tandem with the surge in trading volume, Dogecoin's social dominance has exhibited a positive trend, rising from 1.14% on January 1 to 3.45% on January 21. This increase in social dominance, coupled with the rising volume and active addresses, traditionally signals a bullish sentiment for an asset. The confluence of these factors suggests a heightened market interest and positive sentiment surrounding DOGE, setting the stage for a potential upward price movement.

Presently, Dogecoin is priced at $0.083414, reflecting a slight 2.12% decrease in the past day according to recent data. While the price has experienced a minor dip within this timeframe, overall market sentiment remains positive, aligning with the upward trend observed in on-chain metrics.

The anticipation of DOGE integration as a payment option on Elon Musk’s X platform has generated optimism among market participants. The actual usage of DOGE in transactions on X has heightened excitement among holders, positively influencing the outlook for the meme coin. This anticipation is perceived as a potential catalyst for an imminent price rally in DOGE.