Despite the Price Fluctuations, Dogecoin (DOGE) Network Expansion Signals Growing Adoption

Despite the price fluctuations recorded within the past seven days, which saw its price drop by 16.62%, DOGE has recorded some positive highlights.

Dogecoin (CRYPTO: DOGE) price might be seen heading towards a breakout as the meme coin continues to withstand the selling pressure. This optimism comes as a new report highlights a significant development within the Dogecoin ecosystem.

Now, despite the price movements recorded over the past seven days, which saw its price drop by 16.62%, DOGE has recorded some positive highlights.

Notably, the on-chain analysis by Ali Martinez, a renowned on-chain analyst, shared an important update with the community on DOGE’s activities. According to Martinez, the bearish sentiments on Dogecoin price have not stopped new investors from embracing it.

The on-chain analyst noted that the Dogecoin network has expanded rapidly in the past month, as evidenced by the number of new addresses. Surprisingly, the number of addresses has more than doubled, surging from 16,400 to 34,600 within the time frame. This 110% uptick signals increased adoption and investors’ interest in the meme coin.

Expanding new addresses could trigger increased trading volume and liquidity in the long term, driving DOGE’s value upward and out of its bearish performance. However, they insist that the ecosystem needs to sustain the rising interest, which could be from new users, for overall growth.

As of this writing, DOGE’s price has surged by 3.22% to change hands at $0.1719 in the last 24 hours. This looks like a rebound move for the meme coin as it battles to stay above the $0.18 resistance level.

Analysts say for DOGE to continue on an upward trajectory and retest the $0.20 level, investors need to trade the token actively. However, DOGE’s trading volume remains down by 32.46% at $1.74 billion.

Will It Suffice?

Interestingly, a historical analysis of the Dogecoin network reveals that March has not always been a month of massive price increases.

Data from Cryptorank shows that, on average, DOGE has only recorded a mild growth of 0.07% in the past 11 years of trading. Out of these 11 years, DOGE has closed March on a negative note six times, with the highest loss of 53.3% in 2018.

In 2014, 2015, and 2020, DOGE also posted significant losses of 52.9%, 13.3%, and 18.9%, respectively. The other two years had single-digit percentage losses.

Meanwhile, last year, the coin registered an 87.5% increase in price that saw the meme coin close March 2024 at a record price of $0.22.

The coin's performance in other years in March was worthy of note: in 2017 and 2021, the coin finished with gains of 59.6% and 11.1%, respectively.

With about 18 days left in March, DOGE’s price has lost 17.2%. 2025 might add to its bearish pattern if it continues on this path unless a significant shift happens.

Key Levels To Watch For A Dogecoin Price Breakout

As market watchers keep an eye on the leading meme coin, some are optimistic despite the bleak historical price outlook in March and the prevailing fluctuations.

While the recent price action saw DOGE get rejected from the $0.20 mark and test the crucial low support level of $0.14, the recent rebound sparks hope of likely recovery.

Some maintain that for the coin to continue on an upward trajectory and retest the $0.20 level, investors need to actively trade the token.

Technical analysis on the coin from Ben Azriel, a crypto trader, reveals that the asset is approaching 0.702 and 0.786 Fibonacci retracement levels.

According to Azriel, if the coin breaks above this level, it could lead to a strong bullish trajectory, adding that, "We're getting close to a crucial price level for Dogecoin. If it manages to break through the 0.702 and 0.786 Fibonacci retracement levels, we could see a significant bullish move."