New Dogecoin (DOGE) Addresses Spike to Levels Last Seen in 2022

Dogecoin [DOGE] has seen major movements in one of its key on-chain metrics, New Addresses. The number has jumped to levels last seen in the previous year.

The move is also coming at a time when the price is struggling to reclaim key levels. What signal is the current trend showing?

A massive spike in new Dogecoin addresses

Dogecoin experienced a significant increase in new wallet addresses, with the latest data from Glassnode showing a surge to nearly 200,000 new addresses in a single day.

This is a substantial jump compared to the relatively steady growth seen throughout the past few months.

Source: Glassnode

Historically, such a rise in new addresses signals increased retail interest and potential incoming liquidity.

AMBCrypto’s analysis of the chart showed that the last time there was a similar surge was around November-December in the previous year. The surge at this time was around 1 million.

However, whether this will translate into sustained price growth remains uncertain.

Dogecoin’s price reaction to the surge

Despite the spike in new addresses, Dogecoin’s price did not display the same level of bullish enthusiasm. DOGE was trading at $0.167 at press time, marking a 2.96% decline in the last 24 hours.

Source: TradingView

The 50-day and 200-day moving averages were still above the current price, which showed that DOGE was still in a bearish trend.

However, there were signs of accumulation, as shown by the Accumulation/Distribution [A/D] indicator, which was trending upward at press time.

What the address growth could mean

The increase in new DOGE addresses sparked speculation about what was driving the trend. As explained by Chainomonitor, a surge in new wallet addresses typically correlated with speculative hype or the anticipation of a major event.

While some traders viewed this development as a bullish signal, it was crucial to confirm whether these addresses belonged to long-term holders or short-term speculators. If it was the latter, it could lead to price volatility rather than sustainable growth.

Is DOGE preparing for a reversal?

Although DOGE’s price struggled to break above resistance levels, the influx of new addresses could indicate upcoming momentum.

If the buying pressure continued to increase, DOGE may attempt to reclaim the $0.20 level, with further resistance around $0.25. On the downside, failing to sustain the recent demand could push the price toward $0.15 or lower.

The surge in new addresses presented an intriguing development for Dogecoin. While this metric often preceded price action, other indicators suggested that caution was still warranted.

Traders should watch for confirmation in volume and price trends before assuming a breakout was imminent. If the momentum held, it seemed like DOGE was gearing up for a much-needed reversal.