- Dogecoin faces bearish pressure with declining network activity and a looming death cross signaling further price dips.
- Dogecoin risks falling below the $0.20 support as whale participation and user engagement continue to drop.
Dogecoin faces troubling times. The meme coin’s network activity has plunged to its lowest level since October 2024. Data from analyst Ali Martinez shows that daily active addresses dropped below 60,000. Large-scale transactions also shrank to just 66. This sharp decline reflects fading user engagement and shrinking investor confidence.
Whale participation has also dried up. These large holders now show little interest, signaling distrust in DOGE’s near-term performance. Without their support, Dogecoin could continue its downward spiral.
Looming Death Cross Raises Alarm
Dogecoin’s daily chart paints a grim picture. The 50-day Exponential Moving Average (EMA) has been falling since mid-January. Now, it threatens to cross below the 200-day EMA—a classic bearish signal known as a death cross.
Other indicators confirm the bearish outlook. The Moving Average Convergence Divergence (MACD) shows growing seller dominance. Meanwhile, the Chaikin Money Flow (CMF) plunged from 0.12 to -0.10 in just two days. This drastic drop suggests heavy capital outflows as investors flee the token.
Price Breakdown Looms Beneath $0.20
Dogecoin currently trades at $0.2307 after losing over 5% in 24 hours. The weekly loss now stands at 13%. Increased daily trading volume hints at intensified sell-offs, especially in the Futures market.
The meme coin’s next crucial support lies at $0.22836. Losing this level could trigger a fall below the psychological $0.20 mark, potentially testing $0.19361. Such a drop would translate to a nearly 20% decline from the current price.
Can DOGE Stage a Comeback?
Despite the bleak outlook, some traders remain hopeful. Crypto analyst Trader Tardigrade points to DOGE’s historical pattern of descending wedges. The altcoin’s previous three wedge breakouts led to massive rallies—90%, 208%, and a staggering 445% surge in late 2024.
If the fourth wedge breakout occurs, Dogecoin could target the $1 mark in 2025. While the current sentiment remains bearish, history suggests that DOGE thrives when least expected.
