Active addresses increased more rapidly in October than in any other month. Prices continue to trend higher than major sectors.
Dogecoin (DOGE) has been in the spotlight lately due to a spike in both price and network activity. With the increase in active addresses and significant net inflows, analysts are closely monitoring DOGE’s potential for sustained upward momentum.
Dogecoin address activity drives price momentum
A significant increase in active address activity has fueled Dogecoin’s recent price rise. IntoTheBlock’s data shows a significant increase in active addresses and closely tracks the coin’s price trend.
An increase in active addresses typically indicates increased interest and trading activity in the Dogecoin network, suggesting a wider participation base among holders and traders.
This surge in address activity coincides with DOGE price fluctuations, creating a network effect where increased on-chain activity builds market confidence and increases price stability.
Source: Into the Block
This trend highlights the strong level of support as more users actively engage with Dogecoin. The correlation between the increase in active addresses and price changes suggests that increased network usage is contributing to DOGE’s current rise, reflecting healthy demand for the asset.
Dogecoin net inflows and increased interest from large holders
Another key factor in Dogecoin’s positive outlook is the increase in net inflows of DOGE tokens to exchanges. Net inflows have increased sharply in recent months, indicating that there are more DOGE deposits on exchanges than withdrawals.
In most cases, net inflows suggest that traders or large holders are preparing to sell or may be making large trades. However, the market has absorbed Dogecoin’s recent inflows without spiking volatility, demonstrating strong buying interest and market resilience.
Moreover, analysis of major shareholder activities shows positive sentiment among key stakeholders. Large inflows from large holders, including institutional investors and ‘whales’, could be a bullish indicator as their buying activity indicates confidence in DOGE’s potential.
This large investment influx provides a price cushion, stabilizing DOGE’s recent gains and reducing the risk of a sharp decline.
Source: Into the Block
Technical indicators indicate that the rally may continue
Dogecoin’s technical outlook also supports the bullish scenario. The Moving Average Convergence Divergence (MACD) indicator has recently crossed over into positive territory, indicating a potential momentum change.
The green histogram bars correspond to an increase in trading volume and an increase in active addresses, reinforcing the technical trend towards continued price appreciation.
Source: TradingView
Additionally, the 50-day moving average has broken above the 200-day moving average, forming a golden cross, which is typically considered a long-term bullish indicator in technical analysis.
This pattern suggests that the stronger uptrend will extend further if address activity and net inflows remain stable.
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Dogecoin price trends and key network metrics reflect its strengthening market position.
As it continues to attract attention from both retail and institutional investors, DOGE’s ability to sustain its recent gains will largely depend on whether it can maintain this level of engagement and support across the market.
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