Unusual 72% Dogecoin (DOGE) New Addresses Spike - What's Going On?

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Dog-themed meme coin Dogecoin (DOGE) has been experiencing some positive momentum in recent weeks. As highlighted by Ali Martinez on X, the number of new addresses on the network recorded a 72% surge this past week, leaving the community in awe.

19,630 New DOGE addresses in one Day

According to data from blockchain analytics platform IntoTheBlock, 19,630 new DOGE addresses were created on Sept. 30. 

The surge reflects renewed interest and engagement within the Dogecoin ecosystem. With this significant addition to the daily active addresses on Dogecoin, there may also be a spike in activity. 

Increased adoption is frequently correlated with upward price momentum. The increment's result is not reflected in the DOGE price.

At the time of writing, the meme coin traded at $0.1164, corresponding with a 5.11% dip in the last 24 hours. However, DOGE price is still in the “green” on a seven-day basis. Precisely, it remains up by about 4.41%. 

The coin's other key metrics also do not look very encouraging. DOGE's market cap is 5.12% at $16.7 billion, while its trading volume is 5.86% down at $858 million.

DOGE bull or bear on horizon 

A few hours earlier, the trading volume was soaring to $1.2 billion. This initial sentiment may have attracted traders, enticing them to create new addresses and plunge their funds in. Even the price of Dogecoin reached $0.124, likely a temporary sentiment driven by the surge in whale activity. To a large extent, whales and speculative traders were a major factor in the abrupt volume spike.

Analysts speculate that DOGE may be unable to hold on to its current price level due to the decline in trading volume. There are fears that prices may retrace further and test some of the major support levels, especially if volume returns to presurge levels. 

In the meantime, the 50-day moving average (MA) of the meme coin is around $0.117, which is the first notable support level to keep an eye on.