Dogecoin has witnessed a significant increase in user engagement with a 400% surge in active addresses, despite the recent price decline.
Surge in Dogecoin Network Activity
Santiment data indicates a 400% increase in active addresses on the Dogecoin network, reaching 395,000, even as the price dropped by 18.39% over the past week. The token continues to attract market attention, driven by uncertain origins of increased network activity.
Capital Inflows and Price Correlation
Historical data reveals that periods of high investment in Dogecoin lead to favorable price changes. In October and November 2024, capital inflows boosted the price, while outflows between December 2024 and March 2025 coincided with a price drop.
Technical Indicators and Their Implications
Technical indicator analysis shows uncertainty in DOGE price direction. The Relative Strength Index (RSI) stands at 37.62, indicating possible oversold conditions. The Moving Average Convergence Divergence (MACD) indicator signals a potential trend reversal with green bars in the histogram, despite prevailing bearish trends.
Dogecoin continues to intrigue the market with growing activity amid declining prices. Attention to technical indicators may assist investors in decision-making regarding future investments.
