Dogecoin Price Drops 60% Amid Surge in Address Activity

Dogecoin, a popular cryptocurrency, experienced a significant drop in price from $0.431 to $0.171. Despite this decline, there was a notable surge in address activity, with 395,000 wallets reactivating from late February through early March. This unusual combination of falling prices and rising active addresses suggests that investors are taking advantage of the lower prices to accumulate more Dogecoin, anticipating a potential recovery in the future.

The increase in network traffic and social connections within communities contributed to this spike in address activity. Regular social media buzz and events have driven transaction activity within the Dogecoin network. Additionally, fund movements by large holders likely boosted address activity levels but did not influence DOGE’s price. This disconnect between network activity and price suggests that network usage is not always linked to market value. For instance, on March 14, 2025, active addresses dropped to 55,000, while the price remained at $0.171.

Overall, cumulative activity, community support, and whale fund movements seem to be the primary factors behind the increase in activity, even as prices declined. Analyzing the price action of DOGE, an upward-trending dragonfly doji pattern appeared on the weekly time frame, similar to the pattern seen in 2017. The $0.0006 price rate before 2017 became the starting point for a price jump up to $0.01, delivering high profits. At the time of writing, the price level at $0.171 showed potential for a reversal that may drive DOGE to reach $0.431 or exceed it, similar to the 2017 market momentum.

However, the converse is possible. The 2017 price increase took place over extended accumulation phases, whereas the current decline since $0.431 did not reach comparable depths. Additional selling could result in the Dogecoin price reaching $0.1. Although a rebound appears possible, it does not reduce the existing threat of further price reduction. Current DOGE crowd sentiment stood at -0.31, indicating a slightly bearish mood close to being neutral. The Smart Money held a narrow positive reading of 0.02, suggesting mixed feelings. Wholesome negative sentiment from the crowd base indicated current market undervaluation and pointed toward a possible market shift.

Smart money’s neutral stance showed no strong selling pressure. A reversal might begin from $0.171 with the appearance of a dragonfly doji and lead to $0.431 price. The current low sentiment values bring caution since additional bearish trends could push the price down to $0.1. This situation highlights the complex interplay between market sentiment, network activity, and price movements in the cryptocurrency space, making it a sign to watch for potential future developments in the Dogecoin market.