DOGS token shows a -18.37% decline this week, but can the altcoin reach new highs?
- DOGS token set for a potential surge as technical breakout hints at short-term bullish rally. On-chain metrics show decreased user activity, but stable transactions suggest DOGS may be primed for a rebound.
Dogs [DOGS] has experienced a downtrend against the U.S. dollar over the past week.
As of press time, DOGS was trading at $0.001056, reflecting a -3.47% decline in the last 24 hours and an -18.37% decrease over the past seven days.
With a circulating supply of 520 billion DOGS, the project, at press time, held a market cap of $545,919,186.
The recent downtrend has occurred despite a strong start, as DOGS has been one of the newest additions to the rapidly growing Toncoin ecosystem.
If the predicted breakout occurs, this could mark a significant turnaround for the token’s short-term price action.
Technical indicators suggest potential upside
The press time price of DOGS was $0.0010587, hovering near the middle of the Bollinger Bands. The lower band was at $0.0009783, and the upper band is at $0.0011140, indicating a period of low volatility.
The slight upward movement of 1.04% in the latest 4-hour candle provided early signs of stabilization after recent declines.
In addition, the Money Flow Index (MFI) stood at 55.26, suggesting moderate buying pressure without reaching overbought conditions.
This indicated that there may be room for a price increase in the short term, though a more bullish trend would only be confirmed if the MFI exceeds 75.
Source: TradingView
Meanwhile, the Relative Strength Index (RSI) was at 45.72, signaling that the market is near neutral but with slight bearish sentiment.
Traders will be watching for the RSI to rise above 50, which could signal a shift towards more buying momentum.
Decline in network activity raises concerns
According to IntoTheBlock data, on-chain metrics revealed a sharp drop in daily active addresses over the past week.
On the 5th of September, active addresses peaked at around 1.05 million, but the 7-day change showed a -33.71% decline.
This drop suggested a noticeable decrease in user activity, potentially linked to the recent downtrend in DOGS’ price.
Source: IntoTheBlock
Despite the decline in active addresses, daily transaction volumes remained relatively stable. On the 5th of September, the number of daily transactions reached 655.29k, slightly below the 7-day average of 774.56k transactions.
This followed a recent peak of 1.9 million transactions on the 3rd of September, but the volatility in transaction volume suggested inconsistent user engagement in recent days.
Source: IntoTheBlock
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