Dogecoin (DOGE) has been making headlines recently due to a significant surge in user engagement. On-chain data has revealed a remarkable 400% increase in active addresses, indicating a growing interest in the cryptocurrency.
According to data from Santiment, active addresses for Dogecoin skyrocketed to almost 395,000, marking a substantial surge in user participation. This uptick suggests that more people are utilizing the network, potentially signaling a rise in development activity as well. While the exact cause of this surge is not clear, it does indicate a heightened interest in Dogecoin despite recent price fluctuations.
In terms of price performance, Dogecoin experienced a downward trend from late December 2024 to late February 2025, accompanied by a decrease in daily active addresses. This decline in user engagement may have been influenced by lower prices, which could have deterred users from actively participating in the network.
However, since March 2025, there has been a notable increase in daily active addresses, coinciding with a slight recovery in DOGE’s price. At the time of writing, Dogecoin is trading at $0.1649, showing a 1.55% decrease in the past 24 hours and an 18.39% decline over the past week.
One of the key factors influencing Dogecoin’s price movements is capital inflows. Analysis of capital flows between May 2024 and March 2025 reveals a strong correlation between market sentiment and DOGE’s price. In particular, spikes in DOGE’s price during October-November 2024 were associated with capital inflows, while a drop in price from December 2024 to March 2025 coincided with net capital outflows.
From a technical analysis standpoint, indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest a bearish sentiment surrounding Dogecoin. The RSI, currently at 37.62, is nearing oversold conditions, potentially signaling a price reversal if it rebounds. A value below 30 typically indicates oversold conditions, hinting at a possible upward movement.
On the other hand, the MACD indicator has confirmed a bearish divergence on the daily chart, with the MACD line below the signal line. Despite this bearish signal, the MACD histogram has turned bullish, forming green bars.
In conclusion, Dogecoin’s surge in active addresses, coupled with insights from capital flows and technical indicators, paints a complex picture of the cryptocurrency’s current state. As always, investors and enthusiasts are advised to exercise caution and conduct their own research before making any financial decisions related to Dogecoin.