Dogecoin's active addresses rose 28 percent over the past week, but its price fell during the same period and failed to break out of a weak trend. On March 31, blockchain outlet The Crypto Basic analysed that on-chain indicators improved but a technical breakout had yet to materialise.

Market analyst Ali Martinez (알리 마르티네즈) said on his X account, formerly Twitter, that Dogecoin active addresses increased from 57,000 to 73,000. Active addresses refer to the number of unique wallets that interacted with the chain over a given period.

CoinGlass data showed that, over the past 7 days, $541.28 million worth of DOGE in spot terms moved from exchanges to self-custody addresses. Inflows to exchanges totalled $481.30 million over the same period, putting net outflows at about -$60 million. Prices moved in the opposite direction to the indicators. Over the same period when active users increased, Dogecoin fell 2.55 percent.

Technical analysis pointed to a continuing “descending triangle” pattern on the 4-hour chart. The pattern formed after a late-January peak of $0.127, with lower highs while the lower end held near $0.086. Martinez said Dogecoin’s highs of $0.117 on Feb. 15, $0.104 on March 17 and $0.979 on March 25 aligned with the upper trend line, but it failed to break through. He has previously mentioned that a break above this zone could be followed by a 29 percent move.

On on-chain indicators alone, activity on the Dogecoin network is clearly showing signs of picking up. The rise in active addresses and net outflows from exchanges could be interpreted as a signal that investors are moving coins to external wallets and increasing holdings, but the price has yet to follow and remains in a weak trend.

The near-term key is whether Dogecoin can actually break above the upper resistance of the descending triangle and link improving on-chain trends to a price rebound. If the lower support near $0.086 also breaks, the market may price in a greater likelihood of further declines despite the increase in network activity, suggesting caution is needed.

Dogecoin $DOGE is still stuck in a triangle! https://t.co/Mc1VyPUNVD pic.twitter.com/vMUdsJ3RDI