On-Chain Data Shows Dogecoin User Engagement Spiking: 400%

• Dogecoin’s active addresses surged 400%, indicating increased user participation.
• Capital inflows in late 2024 corresponded with price spikes, showing market sentiment’s impact.
• RSI nearing oversold conditions suggests potential price reversal for DOGE.

Dogecoin (DOGE) is seeing a surprising surge in user engagement, with on-chain data revealing a 400% rise in active addresses. 

What’s Driving the Surge in Active Addresses?

According to Santiment’s data, as reported by crypto analyst Ali Charts, active addresses soared to nearly 395,000; that’s the 400% spike.

This suggests an increasing number of people using the network, possibly hinting at a possible uptick in development activity as well. While the exact cause of the surge is unclear, it indicates growing interest in Dogecoin despite the recent price fluctuations.

How Has DOGE’s Price Been Performing?

From late December 2024 to late February 2025, Dogecoin’s price has seen a declining trend with daily active addresses decreasing alongside. This suggests that lower prices had discouraged user involvement earlier.

Related: Active Dogecoin Wallets Hit 9.5 Million: A Step Toward Mainstream Use?

Notably, since March 2025, the spike in daily active addresses also coincides with a slight recovery in DOGE’s price. As of press time, DOGE is trading at $0.1649, down 1.55% in the past 24 hours and 18.39% over the past week.

What’s the Connection Between Capital Flows and Price?

There’s a strong link between market sentiment and DOGE’s price. Looking at capital inflows between May 2024 until this month, March 2025, capital inflows during October-November 2024 corresponded to spikes in DOGE’s prices (green bars on the chart). 

Source: Coinglass

Whereas from December 2024 through March 2025, the drop in DOGE’s price corresponded to net capital outflows.

What the Technical Indicators Say

Technical indicators, such as the RSI and Moving Average Convergence Divergence (MACD), reflects the bearish sentiment surrounding DOGE.

Source: TradingView

The RSI at 37.62 is nearing oversold conditions, which may signal a possible price reversal if it recovers. A value below 30 typically suggests that DOGE is oversold, implying the possibility of an upward movement.

Related: Dogecoin: Stock RSI Flashes Buy, Can DOGE Break $0.24 Resistance?

However, the MACD indicator has confirmed a bearish divergence on the daily chart with the MACD line (blue) below the signal line (orange). The MACD histogram has also turned bullish, forming green bars.