Dogecoin Activity Drops 95%, Price Faces Strong Resistance
Key Takeaways
Dogecoin (DOGE) has experienced a drastic 95% decline in network activity. The number of active addresses has dropped from 2.66 million in November 2024 to just 130,282. Despite a slight price increase to $0.2101, the future of the cryptocurrency remains uncertain. Negative market sentiment, declining transaction numbers, and a falling MVRV ratio indicate ongoing challenges.
Price Movement and Technical Analysis
Dogecoin is in a downtrend, moving within a symmetrical triangle. After reaching a peak of $0.41796, the current price stands at $0.2101. Key support levels are at $0.17594, while resistance levels are at $0.27155 and $0.31413. If DOGE falls below $0.2100, further losses could follow. The Relative Strength Index (RSI) indicates sustained selling pressure, making recovery difficult.
Decline in Transaction Numbers
The number of daily transactions has been declining since the end of 2024. Occasional spikes do not change the overall downward trend in network activity. Fewer transactions suggest a shrinking user base, which is a warning sign for the long-term stability of the cryptocurrency.
Moderate Decline in MVRV Ratio
Dogecoin’s Market Value to Realized Value (MVRV) ratio stands at 40.63%, down from previous highs. While not yet in negative territory, the decline suggests DOGE may be overvalued. Decreasing profitability for investors could lead to further sell-offs. If the MVRV ratio continues to drop, it may indicate ongoing market weakness.
Market Sentiment Remains Negative
Dogecoin’s weighted sentiment has fallen to -0.999971, indicating strong negative market sentiment. The combination of declining network activity and a falling price increases investor distrust. Without positive catalysts, it will be difficult for DOGE to attract new investors and initiate a recovery.
Can Dogecoin Recover?
Current data suggests that a quick recovery for Dogecoin is unlikely. Declining activity, falling transaction numbers, and negative market sentiment are weighing on the cryptocurrency. Without fundamental improvements or a strong external catalyst, the risk of further losses remains high. A return to previous highs appears unlikely at this time.
You should read that too:
Our Assessment
Dogecoin faces significant challenges. The drastic decline in network activity and negative sentiment make recovery difficult. In the short term, DOGE could remain under pressure unless market conditions change significantly. Investors should closely monitor developments and carefully assess risks.
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $0.20 |
| 24h % | -2.98 % |
| 7d % | -21.77 % |
| 30d % | -38.20 % |
| 60d % | -38.50 % |
| 1y % | 127.24 % |
| Market Cap | $29,556,235,130.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
Advertising transparency