Dogecoin holders drop, but DOGE rises 14%: Examining the shift

• Dogecoin holders have dropped by over 106,000 in the past week, while the price increased by 14%.
• Active Dogecoin addresses surged from 176,000 to over 294,000, reflecting growing network activity.

The number of Dogecoin [DOGE] holders saw a significant decline in the past seven days, possibly reflecting frustration over the recent price trends.

However, in an interesting turn of events, the price of Dogecoin has picked up momentum, marking the beginning of a bullish trend.

Sharp decline in Dogecoin holders

According to data from Santiment, the number of Dogecoin holders has dropped noticeably recently.

The metric tracking non-zero addresses showed a significant sell-off, with the number of holders falling by over 106,000 addresses.

As of the 9th of October, there were 6.73 million holders, but this number decreased to around 6.63 million as of this writing.

Source: Santiment

Despite this decline, Dogecoin remained the largest memecoin by market capitalization, standing at nearly $17.3 billion at press time, according to CoinMarketCap.

The drop in the number of holders suggested that some traders were shifting focus to other assets, even though DOGE has experienced positive price movements recently.

Dogecoin begins a bullish trend

Recent price movements indicated that Dogecoin was breaking free from its sideways trading pattern. This shift coincided with a sharp decline in holders.

Since the sell-off, DOGE has seen its price increase by approximately 14%, and its trend has moved from bearish to bullish.

Source: TradingView

As of this writing, Dogecoin is trading around $0.11, with a slight daily increase. AMBCrypto’s look at the price chart revealed that when the drop in holders began, DOGE was trading at around $0.10.

A major turning point occurred on the 11th of October, when Dogecoin saw a 4% price increase, marking the beginning of its current bullish trend. Another 4% increase on the 14th of October further solidified the upward momentum.

AMBCrypto’s look at Dogecoin’s Relative Strength Index (RSI) showed that it sat around 61 at this time, confirming the start of the bull trend.

The RSI indicates that buying pressure is gaining strength, which could push the price even higher if the trend continues.

Spike in active DOGE addresses

In addition to the price surge, another interesting trend has emerged in the on-chain data: a notable increase in active Dogecoin addresses.

While the number of holders has decreased, the number of active addresses has spiked. Data from the 7-day active address chart shows that on the 10th of October, there were approximately 176,000 active addresses.

Source: Santiment

Realistic or not, here’s DOGE market cap in BTC’s terms

By the 12th of October, this number had surged to over 290,000, and as of this writing, it has surpassed 294,000.

This rise in active addresses suggests that despite the decline in overall holders, more Dogecoin addresses are becoming active in the network.