- Dogecoin addresses increased by 110% from 16,400 to 34,600 while the price dropped.
- DOGE price declined under $0.16 as network activity kept constantly increasing.
- If DOGE breaks below $0.16, it could probably drop further near the $0.14 mark.
Dogecoin’s network activity has surged significantly, with the number of new addresses more than doubling in the past month. According to data shared by analyst Ali Martinez via glassnode, the count of new Dogecoin addresses has climbed from 16,400 to 34,600. Despite this sharp increase, DOGE’s price movement has not mirrored the network growth, signaling a potential divergence between on-chain activity and market valuation.
Strong On-Chain Growth Amid Price Decline
Since mid-February, newly registered addresses have seen a steady upward trend, showing the largest spikes beginning in early March. Initially, the increase in new addresses was not significant, but from the 18th of February, the growth in the number of addresses became more pronounced, peaking around the 10th of March. Nonetheless, DOGE’s price has not behaved the same way.
The chart indicates that while new addresses rose sharply, the price remained volatile, hitting a local high near $0.20 before reversing to approximately $0.14. This suggests that while new users are entering the network, selling pressure or broader market conditions may be limiting price appreciation.
Potential Support and Market Reactions
Ali pointed out that if DOGE’s weekly chart shows a break below $0.16 support, it could signal further downside movement. Market participants are closely watching whether the price stabilizes or if additional downward momentum takes hold.
Related: Dogecoin’s Monthly Doji Hints at a Major 2025 Bullish Run
Meanwhile, social media conversations reveal varied sentiment: some traders see lower levels of price as buying opportunities, while others hold on to serious suspicions of losses. The growing influx of new addresses hints at building interest in Dogecoin, yet whether or not this translates into any continued price momentum is still an open question. While network adoption is increasing, the price action suggests a market struggling to maintain bullish sentiment.
DOGE may get renewed strength if new users continue pouring into the ecosystem while price stabilizes above key support levels. But if the sentiment prevails on the bear’s side, expect even deeper declines to become inevitable. The coming weeks will tell us if Dogecoin can translate its burgeoning network activity into real market gains.
