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- Dogecoin holds above a key support level despite an 11.50% weekly drop and a 33.50% decline in 30 days.
- Whale transactions have fallen to 66 per day, and daily active addresses dropped below 60,000, signaling reduced participation.
- DOGE’s RSI sits at 32, nearing oversold conditions, while a 0.87 Long-to-Short Ratio reflects increased short-selling pressure.
Dogecoin (DOGE) is maintaining strong on top of its crucial support point and is on course towards higher price objectives. DOGE is 11.50% down in last seven days while in last 30 days DOGE is 33.50% down. DOGE is maintaining strong on top of its support point despite such decline.
At the time of writing, Dogecoin is trading at $0.233383, with a 24-hour trading volume of $2.58 billion and a market cap of $34.48 billion. In the last 24 hours, DOGE has dropped 4.90%, adding to its 11.50% decline over the past week. Over the last 30 days, the cryptocurrency has suffered a 33.50% loss, reflecting the broader market downturn.
The analysts advise cautioning that if bearish pressures dominate, DOGE might extend its fall and retest February 3 low of $0.20. The days ahead thus hold crucial for price action in Dogecoin.
Dogecoin Network Activity Drops to Lowest Since Oct 2024
Crypto analyst Ali Martinez has highlighted a sharp drop in Dogecoin’s on-chain activity. Data reveals that whale transaction numbers have fallen to just 66 per day, while daily active addresses have dropped below 60,000. This marks the lowest activity levels seen since October 2024.
A decline in network activity often signals reduced market participation and investor interest. Lower transaction volumes indicate that fewer investors are trading or utilizing Dogecoin, which could lead to weaker price action in the coming weeks.
Multiple technical indicators suggest that Dogecoin remains in a downtrend, making it vulnerable to further losses.
The Relative Strength Index (RSI) of DOGE on the daily chart is 32, below 50, the neutral point. The asset is approaching the oversold range (less than 30), indicating extreme bearishness. Further fall might confirm oversold, and the price might rebound if purchasers enter.
As reported by Coinglass, the DOGE Long-to-Short Ratio stands at 0.87, showing that more traders are betting against Dogecoin. A ratio below 1.0 signals bearish market sentiment, with increased short-selling pressure adding to concerns about further downside movement.
Along with this, an X AI tweet also mentioned that Dogecoin dipped below its 200-day Simple Moving Average (SMA)—a vital point oftentimes used to check longer-run trends. Falling below such important support makes prolonged drops possible if strong buying pressure does not pick up to push the price up through the SMA.
In addition to this, X AI warned that DOGE’s recent fall below vital technical levels might bring ongoing selling pressure, if powerful reversal pattern does not show up in time.
Dogecoin Traders Brace for Possible Price Explosion
Despite today’s decline, past price charts have revealed that Dogecoin is on the brink of massive movement. Market analyst Trader Tradigrade highlights that DOGE is on the brink of completing its fourth falling wedge pattern, which is traditionally a pattern for massive price upturns. Speaking of breaks in the past, Dogecoin climbed 88% after the first falling wedge, 208% after the second, and an enormous 445% after the third. As the fourth falling wedge pattern is on the brink of completion, traders expect DOGE to initiate another explosive push.
Dogecoin’s next movement is unknown given market mood is in volatility. If DOGE holds onto current price floor, there is potential for rebound, and thus price recovery in short-run. If bearish pressure is sustained, price is likely to decline to $0.20 or lower.
With technicals showing bearishness and network activity seeing multi-month lows, traders are advised to take caution. Whether or not Dogecoin is able to defy the trend and stage a recovery is to be observed, but for now, the memecoin is in for a crucial test in days to come.
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