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Key Insights:
- Dogecoin’s network activity has dropped 95%, signaling weakening investor confidence.
- DOGE faces a death cross, while RSI suggests a possible relief bounce.
- Traders are split—$0.06 crash or breakout toward $5 still possible.
Dogecoin price has plunged 16% over the past week, testing critical support levels. The meme coin market cap has dropped to $58.15 billion, and with DOGE hovering near $0.20, traders are bracing for extreme volatility.
Dogecoin Network Activity Plunges—A Warning Sign?
Crypto analyst Ali Martinez highlighted that DOGE’s network activity has collapsed by 95%, a major red flag for its long-term stability. In Nov. 2024, the number of active addresses stood at 2.66 million, but that figure has since plummeted to just 130,282.
Network activity often reflects investor confidence, and such a sharp decline could indicate fading interest. The last time Dogecoin saw a similar drop in active users, the price followed with a brutal selloff. With DOGE already struggling under market-wide bearish sentiment, this decrease in usage could signal further downside risk.
Dogecoin Price Faces Key Support Test as Technical Indicators Flash Bearish
Dogecoin’s recent rejection at $0.2428 resulted in a fall to $0.2104, forming a Doji candle—often a sign of indecision. However, traders are watching closely, with the price now hovering near its $0.20 psychological support.
Multiple exponential moving averages (EMAs) have turned negative, adding to the bearish outlook. The 50-day and 100-day EMAs have formed a death cross, a historically bearish signal. Furthermore, the 20-day and 200-day EMAs remain in a negative alignment, reinforcing downward pressure.
Meanwhile, the RSI (Relative Strength Index) is now in oversold territory, suggesting a potential relief bounce. If DOGE can reclaim $0.21, a short-term push toward $0.24 could be on the table. However, failure to hold $0.19 could see DOGE spiralling down toward $0.06, according to Martinez’s analysis.
Dogecoin at a Crossroads—Breakout or Breakdown Next?
Dogecoin price is hanging by a thread as it tests a key support level. After failing to break above $0.2428, the price slipped to $0.2119 and now sits dangerously close to the $0.20 mark. This level has held firm before, but with selling pressure mounting, traders are bracing for the next big move.
Volatility is picking up. Bollinger Bands show DOGE pressing against the lower range, suggesting sellers are still in control. The 50-day and 100-day moving averages have already crossed bearishly, forming what traders call a death cross—often a bad sign for momentum. Meanwhile, the 20-day and 200-day moving averages remain bearish, adding more resistance.
Another concern is the descending trendline, which DOGE has repeatedly failed to break. The bearish structure remains intact as long as it stays below this barrier. The Relative Strength Index (RSI) has dropped to 28, signalling oversold conditions.
If Dogecoin slips below $0.19, the next target could be as low as $0.06, a level highlighted by analyst Ali Martinez. On the flip side, if bulls push DOGE past the trendline and reclaim $0.2480, a rally toward $0.30 could be on the table.
Derivatives Data Hints at a Bullish Comeback
Dogecoin’s open interest is clawing its way back, up 3% to $1.89 billion. The funding rate flipped positive at 0.0029%, and the long-to-short ratio sits at a neutral 1.
However, on major exchanges like Binance and OKX, traders are betting heavily on Dogecoin’s upside. The long-to-short ratio based on account positions leans 2x to 3x in favour of longs, hinting at optimism in the market.
At the same time, 24-hour liquidations have hit $15.15 million, with longs accounting for $9.13 million and shorts seeing $6.02 million in liquidations.
Can Dogecoin Rally to $5? Analysts Make Bold Claims
While the immediate outlook remains uncertain, some crypto analysts are eyeing a potential parabolic rally for Dogecoin. Crypto analyst Dogeolak waves historical charts like a victory flag, claiming Dogecoin’s past 24,827% rallies could repeat. He’s boldly predicting a surge to $69 between July 2025 and October 2029, fueled by breakout patterns and high ATR volatility.
Meanwhile, X user CryptooELITES is screaming “$5 soon!” and Trader Tardigrade sees a 2017-2018 bull run redux. But hold up—another analyst on X spots a symmetrical triangle breakout, hinting at a 25% jump.
The $0.20 support’s cracking, the charts are grim, and the network’s quieter than a library. Yet, some traders are still betting on a miracle, fueled by past glories and stubborn hope. Will it crash to $0.06 or rocket to $5—or heck, $69?
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of monetary loss.
