Dogecoin Active Addresses Reach 395,000, What’s Next for DOGE?

Dogecoin (DOGE) active wallet addresses have skyrocketed massively, indicating a possible market change and a potential price breakout from the ongoing consolidation. Data shared by crypto analyst Ali Martinez shows that active addresses on the DOGE network have reached 395,000 after seeing a 400% growth today, March 15.

Dogecoin’s new addresses hit 395,000

DOGE is igniting a market rally as new addresses are enormously growing on its network. Metrics from the Santiment feed, as shared by Martinez, show that number of wallet addresses created on Dogecoin has reached 395,000, after registering a 400% growth in a single day.

This swift rise in new addresses has triggered rumors about a possible surge in demand and price. New addresses on Dogecoin typically indicate increased retail interest and liquidity moving into the network. It is a major indicator that the meme coin is experiencing rising adoption and a possible price jump soon. This shows rising interest and market activity around the asset.

DOGE price updates

The rise in on-chain activity in the DOGE network has effected a positive change in the asset’s price. Today, at press time, the asset’s price is standing at $0.1722, after seeing a 1.9% surge over the past 24 hours. This price jump aligns with the new address growth. However, time will tell whether the surge in new wallets could lead to a sustainable price uptrend.

Dogecoin has been struggling with a downward movement over the past month. In the monthly and weekly timeframes, the token’s price has been down 33.4% and 12.2% respectively. Furthermore, Open interest (IO) on DOGE has declined by 1.9% over the past 24 hours, indicating low interest among traders in the asset. A decrease in IO shows a decline in trader confidence, indicating that fewer investors are willing to create new positions in the market at the moment. With this less enthusiasm in the market, the asset may struggle to maintain upward movement, particularly if selling pressure prevails.

The surge in new Dogecoin wallets is normally associated with retail speculation or a key activity that could lead to a price upturn. In short, the emergence of new wallets could have been created by short-term speculators or long-term crypto holders. If the former is the case, the rise in new wallets could cause heightened price fluctuations instead of a sustained price rise, possibly causing short-term volatility without important upward movement.

Of late, DOGE has been struggling with downturns. The tremendous surge in new wallets brings hope about an imminent breakout. However, this can happen if purchasing pressure piles up and these new wallets are true long-term holders with an interest in buying.