- Dogecoin saw a very strong spike in address activity as its price stayed below $0.20.
- DOGE printing a bullish dragonfly doji on the weekly — signaling a potential reversal.
Dogecoin’s [DOGE] price dropped from $0.431 to $0.171, yet the address activity skyrocketed to 395K from late February through early March.
This combination of rising active addresses with falling prices demonstrated special market behaviors in motion.
Such an increase showed that investors were building up their positions at cheap prices to anticipate its upcoming recovery.
Network traffic increased remarkably when active addresses reached 395K while beginning at 97K. Secondly, social connections within communities contributed to the spike.
Source: Santiment
Regular social media buzz and events have driven transaction activity within the Dogecoin network. Additionally, fund movements by large holders likely boosted address activity levels but did not influence DOGE’s price.
The disconnect between network activity and price suggests that network usage is not always linked to market value. For instance, on the 14 of March 2025, active addresses dropped to 55K, while the price stood at $0.171.
Overall, cumulative activity, community support, and whale fund movements seem to be the primary factors behind the increase in activity, even as prices declined.
What DOGE’s weekly price action suggests…
Analyzing the price action of DOGE, an upward-trending dragonfly doji pattern appeared on the weekly time frame, as it did during 2017.
The $0.0006 price rate before 2017 became the starting point for a price jump up to $0.01 delivering high profits.
At the time of writing, the price level at $0.171 showed potential for a reversal that may drive DOGE to reach $0.431 or exceed it, like the 2017 market momentum.
Source: Trading View
However, the converse is possible. The 2017 price increase took place over extended accumulation phases, whereas the current decline since $0.431 did not reach comparable depths.
Additional selling could result in the Dogecoin price reaching $0.1. Although a rebound appears possible, it does not reduce the existing threat of further price reduction.
Market sentiment
Moreover, current DOGE crowd sentiment stood at -0.31 indicating a slightly bearish mood which was close to being neutral. The Smart Money held a narrow positive reading of 0.02 suggesting mixed feelings.
Wholesome negative sentiment from the crowd base indicated current market undervaluation and pointed toward a possible market shift.
Source: Market Prophit
Smart money’s neutral stance showed no strong selling pressure. A reversal might begin from $0.171 with the appearance of a dragonfly doji and lead to $0.431 price.
The current low sentiment values bring caution since additional bearish trends could push the price down to $0.1.
