A cryptocurrency analyst predicted this price action for Dogecoin it will pump very challenging soon, if the on-chain data is any indication. The meme coin is trading at $0.10, but a set of network metrics are starting to provide a constructive outlook.

Despite the frail price action, some analysts believes recovery may be closer than the price table suggests. These predictions are based on various factors, but one notable factor is the enhance in the number of busy addresses interacting with the Dogecoin network.

Active Dogecoin addresses jumped 176% in one week

The latest data from the on-chain analytical platform Santiment indicates a significant enhance in share in the Dogecoin network. According to information shared by Ali Martinez, the number of busy DOGE addresses increased in the last week from 41,557 to 114,662, a jump of 176%.

Dogecoin busy address chart data shows that activity increased towards the end of last week. Previous readings were in the range of 40,000 to 70,000 before the activation of activity pushed the number of busy addresses above 100,000. The last bar in the chart shows the number reaching over 114,000 addresses, the highest level in months.

Active addresses are one measure of actual network engagement. An enhance in this metric usually means that more users are sending, receiving, or interacting with the resource. In the case of Dogecoin, which is known for its waves of retail participation, the sudden enhance in address activity could be a sign of a return of attention to the meme coin.

The commentator says DOGE can pump challenging

The spike in online activity quickly sparked reactions among market observers. Cryptocurrency commentator Myles G responded to this data stating this Dogecoin is “pumping hard soon,” linking an enhance in busy addresses with the possibility of stronger price movement in the future. Such reactions are not unusual in cryptocurrency markets. Therefore, it is not surprising that the analyst expected a challenging pump for the price of Dogecoin.

Perhaps the most significant achievement of Dogecoin’s mighty pumping capacity is the coordinated accumulation by gigantic wallet holders. Another update provided by Ali Martinez adds another dimension to the recent activity around Dogecoin. According to the analyst, whales have purchased approximately 470 million DOGE in the last 72 hours.

The chart attached to this post shows the amount of Dogecoin held by gigantic holders increasing from March 12 to March 14. Technical analysis of Dogecoin price action shows that strength is already growing for a meme coin. It just needs to stay above $0.105 before the end of the week. If history is any precedent, increasing whaling could be the first step towards an upward revaluation.

Featured image from Pixabay, chart from Tradingview.com