Dogecoin Slumps Amid Weak Demand and User Decline
Key Takeaways
- Dogecoin (DOGE) continues to struggle with a long-term downtrend.
- On-chain activity is declining, indicating weak user interest.
- The NVTS value suggests that DOGE may currently be overvalued.
- Many investors from the past six months are significantly in the red.
- Current market conditions argue against a sustainable recovery.
Dogecoin Remains in a Downtrend
Dogecoin briefly recovered from the support level at $0.143 USD in April 2025. However, the price failed to sustainably break through the resistance at $0.166 USD. An attempt to surpass this level already failed on April 13. This development indicates that the bulls currently lack the buying power to reverse the trend.
On-Chain Data Shows Weakness
A look at the blockchain data reveals additional weaknesses. Both the number of daily transactions and the number of active wallets have slightly declined over the past six weeks. This points to decreasing user interest. The “Dormant Circulation” – the movement of previously inactive coins – also showed notable spikes on April 9 and 15. Such movements may indicate sales by frustrated long-term holders.
What Does the Rising NVTS Mean?
The Network Value to Transactions Signal (NVTS) is an indicator that measures the ratio of market capitalization to the average transaction volume over 90 days. A rising NVTS value means that a coin’s market value is growing faster than its actual usage. For DOGE, this value is currently increasing, even though transactions are declining. This suggests that Dogecoin is currently overvalued – a warning sign for investors.
Losses Among Long-Term Holders
The MVRV (Market Value to Realized Value) metric over 180 days is clearly in negative territory. This means that anyone who bought DOGE in the past six months is currently holding a loss on average. Combined with declining activity and a rising NVTS, this paints an overall bearish picture.
Low Demand, High Uncertainty
The current market situation for Dogecoin is marked by uncertainty. The low network usage and ongoing losses among investors show that confidence in the coin is currently low. While short-term price increases are possible, DOGE currently lacks the fundamentals needed to support a sustainable recovery.
Our Assessment
Dogecoin is currently showing clear signs of weakness. The rising NVTS alongside declining activity suggests overvaluation. Long-term investors should exercise caution. Those already invested should closely monitor price trends and on-chain data. Newcomers should wait until a more stable market picture emerges.
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Sources
- Glassnode
- Santiment
- TradingView
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $0.16 |
| 24h % | 0.65 % |
| 7d % | 0.22 % |
| 30d % | -4.41 % |
| 60d % | -36.17 % |
| 1y % | 0.08 % |
| Market Cap | $24,005,675,745.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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