Dogecoin (DOGE) Weekly Active Addresses Jump 16% to 44,000

Dogecoin News

Dogecoin (DOGE), tracked on our Dogecoin hub and still the largest meme-focused altcoin, is showing a split between cautious price action and improving network usage. Weekly active addresses on the network increased from 38,000 to 44,000, a 16% rise, based on on-chain data monitored by COINOTAG. That pickup suggests user engagement is stabilizing even though traders have not yet confirmed a durable trend change. In the latest Aug. 5 market snapshot at 20:51 UTC, DOGE traded near $0.06969, with 24-hour volume around $409.4 million and a market capitalization close to $10.82 billion. Those figures place the asset among the top ten cryptocurrencies by value, but the chart remains defensive. Market technicians describe a structure of lower lows and lower highs, which normally signals that sellers still control short-term momentum. The key issue is resistance: without a decisive, volume-backed move above the nearest supply zone, any bounce may be treated as a reaction rather than a reversal. This matters because Dogecoin has spent months trading under broader bear-market pressure, and participants are demanding confirmation before adding exposure. Dogecoin remains known for low transaction costs and a broad user base, factors that can amplify retail activity when sentiment improves. Our reading of the flow is that active addresses alone do not break resistance; they must be matched by spot demand, higher volume, and sustained buying through the session. For now, the market appears to be testing whether renewed participation can translate into stronger price discovery. The address metric is therefore a leading observation, not a conclusion: it shows more wallets interacting with the network, but it does not yet prove that those wallets are accumulating at levels sufficient to absorb sellers. Until a clean breakout occurs, risk management remains central, and the price path likely stays dependent on volume, broader market sentiment, and whether Dogecoin can convert higher usage into higher realized demand.

The deeper context is that Dogecoin entered this stabilization phase after an extended slide that pushed it to its weakest level since autumn 2023. One market observer flagged that the token dipped close to $0.067, a three-year low, and was changing hands roughly 90% below its previous all-time high. At the time referenced in the earlier market note, DOGE was already trading below $0.07, underscoring how compressed sentiment had become after weeks of underperformance. The psychological importance of that threshold matters because round-number levels often attract attention from participants watching for a base. That drawdown has left DOGE lagging major assets, including Bitcoin and Ethereum, even though its market value near $10.8 billion still ranks it among the largest digital assets. Technical conditions, however, are beginning to look stretched to the downside. The monthly relative strength index has reached an area described as the most oversold since the 2022 market bottom, a state that often precedes at least a relief phase when selling exhaustion appears. In addition, the TD Sequential indicator has produced simultaneous buy signals across the monthly, weekly, daily, and three-day timeframes, a setup analysts characterize as historically rare and frequently associated with strong upward moves. Some market participants are therefore positioning for a possible rebound toward long-term resistance, with one analyst even outlining a speculative path to $1 if the current support zone holds. This is not a confirmed trend change; it is a setup in which deeply depressed positioning, washed-out momentum readings, and improved network usage are converging. The caveat is that momentum indicators can remain oversold during persistent downtrends, and a low bear-market valuation does not automatically attract buyers. The next confirming signal would be higher lows, expanding volume, and a reclaim of nearby resistance levels rather than a single impulsive candle. Until those conditions appear, the recovery thesis remains plausible but still unproven.

COINOTAG’s analysis ties these two developments to a single theme: Dogecoin is attempting to form a usage-led base before price confirms it. The primary on-chain record shows weekly active addresses rising from 38,000 to 44,000, a 16% increase, while market data still shows the asset below key resistance after a multi-year drawdown. That gap is the critical test. If higher wallet activity evolves into sustained buying, the altcoin could convert network growth into market strength. If it does not, oversold indicators may remain stretched without producing a durable reversal. The decisive evidence will be volume, not sentiment.