Unusual 72% Dogecoin (DOGE) New Addresses Spike - What's Going On?

Dogecoin Shows Positive Momentum with Surge in New Addresses

Dog-themed meme coin Dogecoin (DOGE) has witnessed positive momentum recently. As highlighted by Ali Martinez, the number of new addresses on the network surged by 72% this past week, sparking enthusiasm within the community.

Significant Spike in New Addresses

According to data from blockchain analytics platform IntoTheBlock, a remarkable 19,630 new DOGE addresses were created on September 30th. This surge reflects renewed interest and engagement within the Dogecoin ecosystem. The increase in daily active addresses may contribute to a potential spike in activity.

Increased Adoption Not Yet Reflected in Price

While increased adoption often correlates with upward price momentum, the surge in new addresses has not yet translated into a substantial price increase for DOGE. At the time of writing, DOGE trades at $0.1164, representing a 5.11% dip over the past 24 hours. However, DOGE remains in the green on a seven-day basis, up by approximately 4.41%.

Mixed Market Metrics

Other key metrics for DOGE also present a mixed picture. The market cap has declined by 5.12% to $16.7 billion, while trading volume has dropped by 5.86% to $858 million.

Market Speculation and Future Outlook

Analysts speculate that DOGE may face challenges maintaining its current price level due to the decline in trading volume. Concerns exist that prices may retrace and test support levels if volume returns to pre-surge levels.

Meanwhile, the 50-day moving average (MA) of DOGE stands at around $0.117, serving as the first notable support level to monitor.