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Dogecoin has experienced a sudden increase in new wallet addresses, with approximately 200,000 new addresses created in a single day. While this suggests renewed retail interest in DOGE, the price has not yet reacted accordingly, remaining at around $0.1694. Analysts suggest that if critical support levels hold, there could still be a chance for a price recovery.
Dogecoin’s Network Growth Surges
Recent data shows a significant spike in Dogecoin’s network activity, with the creation of nearly 200,000 new wallet addresses in just 24 hours. This marks one of the largest daily increases in recent months and may indicate growing investor interest in the meme coin.
Typically, a rise in new addresses reflects an influx of new investors into the market. However, there is no clear consensus on how this will impact DOGE’s price trajectory. The key question remains: Are these new addresses held by long-term investors or short-term speculators?
Dogecoin Price Reaction
Despite the spike in network growth, DOGE’s price has not seen a proportional increase. At the time of writing, Dogecoin is trading at $0.1694, raising uncertainty about the nature of these new addresses. If the majority belong to short-term traders, heightened volatility may follow instead of a sustained rally.
According to crypto analyst Ali Martinez, Dogecoin is currently trading within an ascending channel pattern. In a March 23 analysis, Martinez noted that as long as DOGE maintains support at the lower boundary of this channel—around $0.167—the potential for a recovery remains intact. If the price holds, Dogecoin could move toward higher resistance levels.
The surge in new addresses could indicate increased liquidity entering the Dogecoin ecosystem, which might support long-term price stability. However, the purpose of these new wallets is crucial. If they are tied to long-term holdings, DOGE could see a gradual, sustainable uptrend. Conversely, if they belong to short-term traders engaging in speculation, price volatility may remain high.
Key Takeaways for Investors
Dogecoin’s network expansion could inject fresh momentum into the market. However, investors should closely monitor price action and key technical levels. Maintaining support above crucial price zones will be essential in determining whether DOGE can sustain an uptrend.
As Turkish NY Radio continues to track these developments, traders and investors should remain cautious, keeping an eye on both technical indicators and market sentiment to navigate potential price movements in the coming weeks.
