Dogecoin active addresses increase by 36%, DOGE price reaches base
Dogecoin has seen a significant uptick in activity recently, both on-chain and on the price chart, indicating a potential resurgence in network engagement and market movements. Active addresses associated with Dogecoin surged by 36% to surpass 71,400, marking a substantial rise in network participation over the past week, as per data reported by market analyst Ali Charts. This increase in address activity is a clear indicator of heightened on-chain usage and interaction within the network, suggesting increased interest and attention towards DOGE in the market.
The chart depicting Dogecoin active addresses illustrates a consistent upward trend from late January to early February, with a slight dip around January 25-26 followed by a steady increase in activity. By February 1, the number of active addresses had surged from the low 50,000s to over 71,400, showcasing the most significant weekly expansion in address activity within the depicted timeframe. This surge in active addresses points towards a continuous and consistent rise in network engagement, reflecting a sustained increase in user interactions rather than isolated spikes, coinciding with the renewed market focus on DOGE.
Simultaneously, the price of Dogecoin has retraced back to a long-term base zone on the weekly chart, as evidenced by a TradingView snapshot shared by analyst Trader Tardigrade. The chart highlights DOGE revisiting a horizontal support band near the $0.10 mark after a prolonged downward trend from its peak in 2024. This base area serves as a historical consolidation zone where price has previously exhibited stabilization before subsequent uptrends.
The weekly chart for Dogecoin demonstrates a decline from the 2024 high around the $0.45-$0.48 range, followed by a series of lower highs indicating a downward trajectory. Approaching the highlighted base zone, selling pressure alleviated, and price action consolidated near the support band, resembling past instances where DOGE paused before significant price movements. This retesting of the long-term support area validates the historical significance of this zone, emphasizing multiple instances of price stabilization and accumulation after downturns.
Overall, the recent surge in active addresses and the price retracement to a long-term base zone indicate a potential shift in momentum for Dogecoin, with increased network activity and market interest pointing towards possible future price movements. The sustained rise in user engagement and the retesting of historical support levels suggest a favorable outlook for DOGE, highlighting growing confidence and participation in the Dogecoin ecosystem.
