Dogecoin Sees 400% Surge in Active Addresses as RSI Nears Oversold Zone

Dogecoin's active addresses surged 400% to 395,000, demonstrating robust network engagement despite recent price dips.

A week-long price drop of 18.39% in DOGE hasn't dampened growing on-chain activity, fueling expectations of renewed market interest.

The RSI indicator suggests an oversold condition, while the MACD histogram shows bullish green bars, presenting a mixed technical picture.

Dogecoin (DOGE) has seen a significant increase in user engagement, with on-chain data revealing a 400% jump in active addresses. Data from Santiment, analyzed by crypto expert Ali Charts, shows the network gained 395,000 active addresses during a period of price decline.

Despite recent price fluctuations, market interest in Dogecoin appears to be growing. The reasons for this surge in activity remain unclear, but potential developmental initiatives and general market interest are possible contributing factors.

Market trends indicate Dogecoin experienced periods of both upward and downward price movement from late December 2024 to the present. Since late 2024, Dogecoin has seen a declining price trend, with daily active addresses correlating with price fluctuations. Price decreases appeared to discourage new network participation.

However, a shift occurred in March 2025, with active addresses increasing alongside signs of price improvement. DOGE currently trades at $0.1649, down 1.55% in the last 24 hours and 18.39% over the week. The recent surge in blockchain network activity may be influencing market price trends.

Capital Inflows and Price Correlation

Historically, high investment in DOGE has correlated with positive price outcomes. Data from May 2024 to March 2025 shows DOGE's price increased during October and November 2024, periods of significant capital inflow. Conversely, capital outflow between December 2024 and March 2025 coincided with a price decline, highlighting the strong link between investor sentiment and DOGE's market value.

Technical Indicators Suggest Potential Reversal

Technical indicators offer a mixed outlook for DOGE's price direction. The Relative Strength Index (RSI) stands at 37.62, nearing oversold territory. RSI values below 30 often precede price increases.

The Moving Average Convergence Divergence (MACD) currently displays bearish signals, with the MACD line below the signal line. However, recent green bars in the MACD histogram suggest a potential weakening of bearish momentum.