Massive 72% Jump in Dogecoin New Addresses: What’s Happening with DOGE?

• A 72% rise in new Dogecoin addresses indicates heightened interest in the meme coin, but the price has declined despite the activity.
• Analysts are cautious as a drop in trading volume may push DOGE to test key support levels like the 50-day moving average.

After a recent slowdown, as reported by CNF, Dogecoin (DOGE) has seen a surge in activity, marked by a 72% increase in new addresses over the past week. As shared in a recent tweet by blockchain analyst Ali Martinez, 19,630 new DOGE addresses were created on September 30, according to IntoTheBlock, reflecting heightened engagement in the Dogecoin ecosystem.

The #Dogecoin network is experiencing significant growth! Over the past week, there's been a 72% increase in new $DOGE addresses, and just yesterday alone, 19,630 new #DOGE addresses were created! pic.twitter.com/5Tj8ZvcxUu

— Ali (@ali_charts) October 1, 2024

This increase in daily active addresses suggests growing interest in the meme coin, potentially leading to a rise in network activity.

However, despite the influx of new addresses, DOGE’s price dipped by 5.11%, trading at $0.1164 at the time of reporting. It remains up 4.41% over the past week, maintaining positive momentum. Other key metrics for DOGE, such as market cap and trading volume, have also declined, with the market cap down 5.12% to $16.7 billion and trading volume decreasing by 5.86% to $858 million.

Earlier, trading volume had surged to $1.2 billion, driven by increased whale activity, temporarily pushing the price to $0.124. According to CoinMarketCap, Dogecoin (DOGE) is now trading at $0.1077, with an 8.83% decrease in the past day and a 2.00% decrease over the past week. See DOGE price chart below.

What’s Happening with DOGE?

While Dogecoin’s recent surge in new addresses and whale activity has sparked market excitement, analysts remain cautious. A drop in trading volume has raised concerns that DOGE may struggle to maintain its current price levels.

There is speculation that prices could retrace further, testing major support levels, especially if trading volume reverts to pre-surge levels. The first support level to monitor is the 50-day moving average at $0.117, which could play a crucial role in determining DOGE’s next move.