Dormant Dogecoin wallets are now awake

• Idle DOGE tokens are now interacting after a long period of no activity.
• The Dogecoin price may break out of $0.07 soon.

Some Dogecoin [DOGE] dormant addresses have suddenly become light sleepers, according to a recent post by on-chain data provider Santiment. Using the Age Consumed metric, Santiment noted that many old wallets have been moving their coins.

🐶 #Altcoins are back in the green today, and data indicates there has been a massive amount of older $DOGE moving out of stagnant wallets today. Keep an eye on this, as well as the fact that 121 new 1M+ #Dogecoin wallets have popped up in the past month. https://t.co/OjXvbTEEf9 pic.twitter.com/zHMyiqBI7c

— Santiment (@santimentfeed) November 22, 2023

At press time, Dogecoin’s Age Consumed metric had reached 56.97. Spikes in this metric confirm that a large number of tokens have moved after being idle for a long period of time. 

Old school wants a share of the trend 

Furthermore, it was uncertain why these old coins decided to wake up. However, from AMBCrypto’s previous analysis, the meme has been showing signs of a rally.

Combined with its rising network activity, there is a chance that these dormant addresses do not want to be left out of the potential uptick. 

However, it seemed that many of these moving coins have not been laid low in terms of usage in transactions. This is because AMBCrypto’s evaluation of one-day DOGE circulation showed that the metric decreased.

At the time of writing, the circulation was down to 1.899. In relation to the price action, the decrease in circulation means that DOGE might evade falling to selling pressure. As mentioned earlier, there have been talks of a likely Dogecoin uptrend. 

But the coin has not brought the predictions to reality, changing hands at $0.075 as of this writing. Should the circulation continue to fall, and DOGE buying pressure increases, then the coin may follow the broader altcoin uptick. 

Negative sentiment amid bullish bets

Meanwhile, Dogecoin’s tight trading range seems to have generated unfavorable reviews from a larger part of the market. This inference was gotten from the Weighted Sentiment which fell to -0.116.

The Weighted Sentiment spikes when the social volume is high and the majority of the message around a project is positive. On the other hand, the Weighted Sentiment falls when a better part of the messages seems pessimistic. 

For Dogecoin, it was the latter despite enjoying a wave of positivity on 20th November.

When it comes to the funding rate, traders were not allowing DOGE’s price action to affect their conviction that the next significant leg is up for the coin.

At press time, DOGE’s funding rate on the Binance exchange was 0.01%. Funding rates are defined by the fees paid between short-positioned and long-positioned traders.

To be long is to bet that the price of an asset will increase. This brings about a positive funding rate.

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To be short is to predict that the price will decrease, indicated by a negative funding rate.

As it stands, DOGE may continue to trade around $0.07. However, there is a chance for a major breakout which could pull the cryptocurrency upwards.