- Dogecoin dropped to $0.196 before rebounding to $0.2014, reflecting a 20% weekly decline amid bearish market sentiment.
- Dogecoin’s network activity and long-term holder base have decreased, while short-term traders surged, increasing market volatility.
Dogecoin has taken a sharp hit, dropping below $0.20 as predicted by analyst Ali Martinez. The meme coin plunged to $0.196 before a slight rebound to $0.2014. Over the past week, DOGE has lost 20% of its value, reflecting weakened momentum and growing bearish sentiment.
Bearish Breakdown and Potential Support Levels
DOGE broke down from a symmetrical triangle pattern, signaling further downside. Martinez used a 1-hour DOGE/USDT chart to highlight this bearish breakout. Fibonacci retracement levels suggest key support at $0.20578 and $0.197. Dogecoin already tested the 1.414 Fibonacci level at $0.196 before bouncing slightly.
Network Activity Hits Multi-Month Lows
Dogecoin’s network activity has plummeted. Active addresses dropped below 60,000 per day, the lowest since October 2024. Whale transactions also slowed, with only 66 recorded. This decline in engagement signals weaker demand, adding to selling pressure.
Shift in Investor Behavior Sparks Volatility
Investor sentiment has shifted dramatically. Long-term holders decreased by 2.67%, and mid-term cruisers dropped by 11.81%. Meanwhile, short-term traders surged by 107.45%, highlighting increased speculative activity. This shift raises the risk of rapid price swings and potential sell-offs.
Is There a Silver Lining?
Despite the downturn, some analysts see a buying opportunity. Analyst CryptoElites predicts DOGE could soar to $1.20, citing a cup-and-handle pattern forming on the charts. While this bullish scenario is speculative, it suggests potential for a massive rebound.
Dogecoin’s recent dip has investors questioning its next move. With bearish patterns and declining network activity, caution is warranted. However, speculative traders may drive volatility, opening opportunities for quick gains—or further losses.
