Dogecoin’s October trend: More active users, higher prices?

• Active addresses have spiked more in October than in other months.
• Price has continued to trend above key areas.

Dogecoin [DOGE] has been drawing attention lately due to a surge in both price and network activity. With increased active addresses and notable net inflows, analysts are closely monitoring DOGE’s potential for sustained upward momentum.

Dogecoin address activity drives price momentum

A significant uptick in active address activity has fueled Dogecoin’s recent price rise. Data from IntoTheBlock shows a strong increase in active addresses, closely tracking the coin’s price trend. 

An increase in active addresses typically indicates growing interest and transaction activity on the Dogecoin network, suggesting a broader participation base among holders and traders.

This surge in address activity aligns with DOGE’s price movement, creating a network effect where heightened on-chain activity builds market confidence and boosts price stability.

Source: IntoTheBlock

This trend underscores a robust support level as more users actively engage with Dogecoin. The correlation between active address growth and price movement implies that increased network usage is contributing to DOGE’s current rally, reflecting a healthy demand for the asset.

Dogecoin’s rising net inflows and large-holder interest

Another important factor in Dogecoin’s positive outlook is the increased net inflows of DOGE tokens on exchanges. Over recent months, net inflows have risen sharply, indicating a higher volume of DOGE deposits on exchanges than withdrawals. 

In most cases, net inflows suggest that traders and larger holders may be preparing to sell or engage in high-volume trades. However, the market has absorbed Dogecoin’s recent inflows without spiking volatility, pointing to strong buying interest and market resilience.

Additionally, analysis of large-holder activity shows positive sentiment among key stakeholders. Major inflows from large holders, including institutions and “whales,” can be a bullish indicator as their buying activity signals confidence in DOGE’s potential.

This influx of significant investments provides a price cushion, stabilising DOGE’s recent gains and reducing the risk of sharp sell-offs.

Source: IntoTheBlock

Technical indicators signal a potential for continued upside

The technical outlook for Dogecoin also supports a bullish scenario. The Moving Average Convergence Divergence (MACD) indicator shows a recent crossover into positive territory, signaling a potential momentum shift.

The green histogram bars, aligning with increased volume and active address growth, reinforce the technical trend toward continued price gains.

Source: TradingView

Furthermore, the 50-day moving average has crossed above the 200-day moving average, creating a golden cross, typically viewed as a long-term bullish indicator in technical analysis.

This pattern suggests a stronger upward trend extending further if address activity and net inflows remain steady.

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Dogecoin’s price action and key network indicators reflect a strengthening position in the market.

As it continues to draw attention from both retail and institutional investors, DOGE’s ability to sustain its recent rally will largely depend on maintaining this level of engagement and support across the market.