Highlights
- Recent U.S. inflation data shows a decrease, with CPI at 2.8% in February, boosting optimism for crypto assets.
- Dogecoin crypto’s daily active addresses have skyrocketed to nearly 395,000, indicating increased network engagement and potential trading volume.
- Analysts predict a possible breakout for Dogecoin price if it maintains its key support zone amid improving macroeconomic conditions.
Dogecoin had a challenging start to Q1 2025, spending much of the time in correction mode. The situation escalated in February when trade tariffs faced intense retaliation, disrupting the global financial landscape.
This turmoil led to a significant decline in major markets, which in turn affected the crypto sector, including Bitcoin and altcoins like Dogecoin. Despite the downturn, the Dogecoin price has reached a historical level similar to of the rally that followed Trump’s election victory.
Recently, the U.S. reported a decrease in inflation rates, which has positively impacted the crypto sector, including alts like Dogecoin.
As macroeconomic factors improve, on-chain metrics for many altcoins are also showing signs of recovery.
Notably, Dogecoin’s on-chain activity has surged in recent days, resulting in a remarkable 400% increase in active addresses.
Many analysts are now predicting that Dogecoin’s price may be gearing up for a breakout, provided it can maintain its key support zone. Keep reading to know more.
Dogecoin Price Stabilizes Post Optimistic Inflation Reprot
After reaching its yearly peak in December 2024, Dogecoin price experienced a decline, following a downward dynamic trendline that intensified in the first quarter of 2025.
This downturn was largely driven by macroeconomic factors that overshadowed any positive developments in the market. This led to a drop in the Dogecoin price and affecting the entire crypto sector.
However, on March 11, after enduring a significant fall, the token found support at a historically important level of $0.1456. This level had previously ignited a rally in November 2024.
In the days following this support, it is observed that the Dogecoin price has surged by 24%. This is suggesting that macroeconomic conditions may be starting to align favorably for the crypto market.
Recent inflation data has contributed to this optimism, indicating a potential reduction in inflation rates, which boosted optimism or crypto assets.
The Consumer Price Index (CPI) data released this week showed that inflation rose to 2.8% in February, falling short of the expected 2.9-3.0%.
Also, the Producer Price Index (PPI) data indicated a 0% increase in inflation, significantly below the anticipated 0.3%.
These figures have instilled some confidence in the market, as a result Dogecoin crypto rose few points higher.
This is also suggesting that inflation may indeed be slowing, which could lead the U.S. Federal Reserve to consider cutting interest rates.
Rate cuts are generally bullish for the crypto market, as they encourage investors to allocate more capital to riskier assets.
From a macro perspective, if the Fed adopts a dovish stance at its upcoming FOMC meeting and signals imminent monetary easing policies, these coins could see further gains in the coming week.
Active Addresses on Fire in Dogecoin
Dogecoin crypto has experienced a significant increase in daily active addresses, reaching nearly 395,000, according to on-chain data from Santiment. Market analyst Ali highlighted this sharp rise, noting that network engagement is on the upswing.
This spike in activity often correlates with increased trading volume and heightened interest from both retail and institutional investors.
Interestingly, this growth in active addresses is in contrast with the price movements of DOGE. While the Dogecoin price has remained relatively stagnant at around $0.17, the number of users on the network continues to climb.
Historically, such a surge in activity can foreshadow price volatility, as greater market engagement typically leads to higher transaction volumes and potential price fluctuations.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
