Dogecoin's active address soared 400%, but weak demand caused prices to fall

Dogecoin's on-chain activity has increased significantly, even as its price continues to fall. Analysts looked at network engagement and price trends to identify potential market movements. Activity addresses increase when prices fall Ali Martinez reported that Dogecoin's active addresses skyrocketed 400%, reaching nearly 395,000. Despite this, the price of Dogecoin has remained in a downtrend since mid-December. Price spikes in January and March coincided with higher network activity but failed to sustain the upward momentum.

Martinez explained that Dogecoin has created lower highs and lower lows, indicating persistent pessimism. The asset experienced brief spikes in mid-January and late January, but heavy selling pressure prevented a continued increase. In March, Dogecoin was priced around $0.171, indicating weak demand in the market. Despite a significant increase in network participation, Martinez noted that demand has yet to support the price recovery. He stated that increased participation alone is not enough to drive the uptrend, as buying pressure is not enough. Market instability and future prospects Martinez explained that Dogecoin's market behavior reveals a disconnect between network activity and price fluctuations. Growing involvement does not translate into a significant price reversal. Daily active addresses remained stable for most of the observation period but saw significant increases in early January and March. These spikes show temporary interest but lack the momentum needed to drive a sustainable breakthrough. By March 3, the price of Dogecoin continued its downtrend despite elevated on-chain activity. Martinez emphasized that the asset is still in a bearish phase, with no clear signs of recovery. The data shows that while network participation has increased, market conditions remain uncertain. Dogecoin's future price movements will depend on whether demand is strong enough to support a breakout. Martinez's analysis indicates that traders should keep a close eye on network activity and key support levels.