- Dogecoin active addresses went up 400% to 395,000, but its price has been on a consistent decline since mid-December.
- Despite January and March network spikes, Dogecoin could not hold on to gains, as selling pressure cut short each rally.
- Heightened activity has not led to a recovery in price, with sluggish demand keeping Dogecoin in a downtrend with no clear bounce.
Dogecoin’s on-chain activity has increased significantly, even as its price continues to decline. Analysts have examined network engagement and price trends to determine potential market movements.
Active Addresses Increase as Price Declines
Ali Martinez reported that Dogecoin’s active addresses spiked 400%, reaching nearly 395,000. Despite this, Dogecoin’s price has remained in a downtrend since mid-December. Price surges in January and March coincided with higher network activity but failed to sustain momentum.
Martinez explained that Dogecoin has been creating lower highs and lower lows, indicating persistent bearishness. The asset experienced brief spikes in mid-January and late January, but massive selling pressure prevented persistent increases. In March, Dogecoin was approximately $0.171, indicating poor demand in the market.
Although network engagement increased significantly, Martinez noted that demand has yet to support a price recovery. He stated that rising participation alone is not enough to drive an uptrend, as buying pressure remains insufficient.
Market Uncertainty and Future Prospects
Martinez explained that Dogecoin’s market behavior shows a disconnect between network activity and price movement. Increased participation has not translated into a significant price reversal.
Daily active addresses remained stable for most of the observed period but saw significant spikes in early January and March. These surges suggested temporary interest but lacked the necessary momentum to drive a sustained breakout.
By March, Dogecoin’s price continued its downward trend despite heightened on-chain activity. Martinez emphasized that the asset remains in a bearish phase, with no clear signs of recovery. The data suggests that while network participation has grown, market conditions remain uncertain.
Dogecoin’s future price movement will depend on whether demand strengthens enough to support a breakout. Martinez’s analysis indicates that traders should closely monitor network activity and key support levels.
