- The Dogecoin network saw a strong increase in new addresses, points to increasing adoption and speculative importance.
- Despite the address growth, the price of Doge remains under pressure. Will this activity feed a bullish breakout on the chain?
Dogecoin [DOGE] has seen large movements in one of the most important statistics at the chain, new addresses. The number has risen to levels in the previous year.
The move also comes at a time when the price is struggling to reclaim the most important levels. Which signal is displayed the current trend?
A huge peak in new Dogecoin addresses
Dogecoin has experienced a significant increase in new wallet addresses, with the latest data that show an increase of nearly 200,000 new addresses in one day.
This is a substantial jump compared to the relatively steady growth that has been seen in recent months.
Source: Glassnode
Historically such an increase in New addresses Signals increased the interest of the retail trade and potential incoming liquidity.
Ambcryptos analysis of the graph showed that the last time there was a similar wave around November-December in the previous year. The increase was currently around 1 million.
Whether this will translate into sustainable price growth remains uncertain.
Dogecoin’s price response to the increase
Despite the peak in new addresses, the Dogecoin price has not reflected the same level of bullish enthusiasm. From this letter, Doge acted at $ 0.167 and marked a decrease of 2.96% in the last 24 hours.
Source: TradingView
The advancing averages of 50 days and 200 days remained above the current price, indicating that Doge was still in a bearish trend.
However, there were signs of accumulation, as shown by the accumulation/distribution [A/D] Indicator, who was up from the moment of the press.
What the address growth could mean
The increase in new doge addresses increases speculation about what the trend feeds. Historically, an increase in new wallet addresses has been correlated with speculative hype or anticipation on an important event.
Although some traders see this as a bullish signal, it is essential to confirm whether these addresses belong to long -term holders or speculators in the short term.
If the latter, this can lead to price volatility instead of sustainable growth.
Do Doge prepares for a reversal?
Although the price of doge has had difficulty breaking above the resistance levels, the inflow of new addresses could indicate the upcoming impulse.
If the purchasing pressure continues to rise, Doge can try to reclaim the level of $ 0.20, with further resistance near $ 0.25.
On the other hand, the recent question cannot retain the price to $ 0.15 or lower.
The Golf in new addresses presents an intriguing development for Dogecoin. Although this statistics often precedes price action, other indicators suggest that caution is still justified.
Traders must look for confirmation in volume and price trends before they assume that an outbreak is imminent. If the momentum applies, Doge may be prepared for a much needed reversal.
