Dogecoin Update

Dogecoin saw a strong spike in address activity as its price remained below $0.20.

Price Action

DOGE printed a bullish dragonfly doji on the weekly chart, signaling a potential reversal. Dogecoin’s price dropped from $0.431 to $0.171, yet address activity surged from 97K to 395K from late February through early March. This surge in active addresses despite falling prices indicated that investors were accumulating positions at lower prices in anticipation of a recovery.

Remarkable network traffic was connected to the increase in active addresses. Social media buzz and community events likely contributed to this spike, although movements by large holders boosted address activity without impacting DOGE’s price.

The disparity between network activity and price suggests that high network usage does not always correlate with market value. For instance, on March 14, 2025, active addresses dropped to 55K, while the price was $0.171.

Overall, cumulative activity, community support, and whale fund movements appear to be key factors driving increased activity amid price declines.

DOGE’s Weekly Price Action Analysis

An upward-trending dragonfly doji pattern has emerged on the weekly time frame, similar to what was seen in 2017 when DOGE surged from $0.0006 to $0.01.

Currently, at $0.171, a price reversal may drive DOGE back up to or beyond $0.431, reflecting 2017 market momentum. However, there’s potential for further declines; if selling continues, the price could drop to $0.1. While a rebound seems possible, risks of additional price drops remain.

Market Sentiment

The current sentiment for DOGE stands at -0.31, reflecting a slightly bearish mood close to neutral. Meanwhile, Smart Money shows a marginally positive reading of 0.02, indicating mixed feelings. The largely negative sentiment suggests market undervaluation and potential for a shift, while Smart Money’s neutral stance indicates no strong selling pressure. A potential reversal could emerge from $0.171, accompanied by the dragonfly doji pattern, possibly leading to a target of $0.431. However, low sentiment values warrant caution, as continued bearish trends could push prices down to $0.1.