Dogecoin (CRYPTO: DOGE) has seen a surprising surge in user engagement, with on-chain data from Santiment revealing a 400% spike in active addresses.

This engagement is crucial for any cryptocurrency as it indicates the level of activity and interest in the network.

What Happened: According to crypto analyst Ali Charts, who shared Santiment’s findings, active addresses soared to nearly 395,000. This suggests an increasing number of people using the network, possibly hinting at a possible uptick in development activity as well.

While the exact cause of the surge is unclear, it indicates growing interest in Dogecoin despite the recent price fluctuations.

On the price front, Dogecoin has been steadily declining in price from late December 2024 to late February 2025 with daily active addresses also decreasing. This suggests that lower prices had discouraged user involvement earlier.

Notably, since March 2025, the spike in daily active addresses also coincides with a slight recovery in DOGE’s price. As of press time, DOGE is trading at $0.1649, down 1.55% in the past 24 hours and 18.39% over the past week.

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Capital Flows And Price Link: There’s a strong link between market sentiment and DOGE’s price. Looking at capital flows between May 2024 until this month, March 2025, capital inflows during October-November 2024 corresponded to spikes in DOGE’s prices (green bars on the chart).

Whereas from December 2024 through March 2025, the drop in DOGE’s price corresponded to net capital outflows.

Dogecoin: A Technical Perspective

Technical indicators, such as the RSI and Moving Average Convergence Divergence (MACD), are reflecting the bearish sentiment surrounding DOGE.

The RSI at 37.62 is nearing oversold conditions, which may signal a possible price reversal if it recovers. A value below 30 typically suggests that DOGE is oversold, implying the possibility of an upward movement.

However, the MACD indicator has confirmed a bearish divergence on the daily chart with the MACD line (blue) below the signal line (orange). The MACD histogram has also turned bullish, forming green bars.

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