Dogecoin Faces Short-Term Risks Amid Weak Activity
Key Takeaways
Dogecoin (DOGE) is currently in the spotlight for many traders. Approximately 76.65% of traders on Binance Futures are betting on rising prices. However, despite this optimistic sentiment, technical indicators and network data tell a different story. The high number of long positions carries risks. Liquidations are increasing, while network activity remains low. This could lead to further short-term price declines.
Market Sentiment: Optimism with Risks
The majority of traders are expecting Dogecoin’s price to rise. On Binance Futures, 76.65% of market participants are holding long positions — bets on increasing prices. However, this one-sided positioning can be dangerous. If the price doesn’t rise as expected, mass liquidations could occur. This means positions are automatically closed, creating additional selling pressure.
Current Price and Technical Outlook
At the time of analysis, the DOGE price stood at USD 0.1809 — a drop of 7.96% within 24 hours. This brings the price close to a key support zone. If this level holds, a rise toward USD 0.208 could be possible. However, if the price falls below the support, further losses are likely. Traders should monitor this area closely.
Network Activity Remains Weak
A look at blockchain data shows that Dogecoin network usage is currently low. On March 28, 2025, only 47,577 active addresses and 14,020 transactions were recorded. Low activity indicates weak user interest. Without increasing demand, achieving a sustainable price increase will be difficult.
Liquidations: Long Positions Under Pressure
Liquidation data paints a clear picture: long positions are being closed far more frequently than short positions. At the time of data collection, USD 5.53 million worth of longs were liquidated — compared to just USD 421,680 in shorts. This shows that many traders were caught off guard. The market is vulnerable to further declines.
MVRV Ratio Suggests Overvaluation
The so-called MVRV ratio (Market Value to Realized Value) stands at 0.546. This value indicates that the current market price is slightly above the average price paid. A low MVRV ratio can point to limited upside potential — especially if no new catalysts or investor interest emerge.
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Outlook: No Short-Term Rally in Sight
Although market sentiment appears optimistic, many facts suggest otherwise. The high number of long positions, weak network activity, and the MVRV ratio all point to a possible correction. Without clear momentum, Dogecoin may struggle to move upward in the short term.
Our Assessment
If you’re invested in Dogecoin or considering entering the market, you should closely monitor current developments. While sentiment is bullish, technical and fundamental data call for caution. The high number of long liquidations especially shows that many traders were overly optimistic. Keep a close eye on the support zone at USD 0.1809. A break below this level could trigger further losses. Long-term investors should wait for a sustained recovery in network activity before betting on rising prices.
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.16 |
| 24h % | 4.46 % |
| 7d % | -3.30 % |
| 30d % | -4.66 % |
| 60d % | -36.81 % |
| 1y % | 0.31 % |
| Market Cap | $23,949,978,925.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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