- The activity of the Dogecoin network has dropped by 95% and its price is struggling to maintain the momentum.
- The drop in the number of transactions, the MVRV ratio and the negative feeling suggest a limited recovery potential for the Doge.
DOGECOIN (DOGE) saw a sharp drop of 95% of its network activity, active addresses from 2.66 million in November 2024 to only 130,282 at the time of the press.
The Dogecoin price was $ 0.2101 at the moment, showing a modest increase of 2.42% in the last 24 hours. This sharp drop in activity could suggest that Dogecoin had a hard time maintaining momentum in the wider market challenges.
What does the action of the future of Dogecoin say?
Ambcrypto’s gaze on the action of Dogecoin prices showed that it had been in a regular decrease trend in a symmetrical triangle after reaching a peak of $ 0.41796.
The price was located nearly $ 0.2101 at the time of the press, with support found around the bar of $ 0.17594.
However, there are key resistance levels that could influence future movements, namely $ 0.27,155 and $ 0.31413.
If Doge does not hold above $ 0,2100, it could undergo other losses. In addition, the RSI was lower, indicating a continuous sale pressure.
Consequently, Dogecoin can find it difficult to free itself from its current decreased trend unless it sees a major change in the feeling of the market.
Source: tradingView
The drop in the number of transactions suggests …
The data in the number of transactions have painted a similar image, DOGE showing coherent decreases in daily transactions since its peak activity at the end of 2024.
Although the sporadic spikes have occurred, the volume of transactions has dropped considerably, signaling a lower network activity.
This trend suggested that Doge’s user base has shrunk, which is a crucial indicator of its long -term health.
The absence of new transactions also underlined the disinterest of the medal, in particular in relation to its previous enthusiasm.
Source: Santiment
Moderate decline in the MVRV report of DOGE
The MVRV report of Dogecoin decreased to 40.63%, indicating a moderate drop in its previous summits.
Although it is not yet in negative territory, this decrease indicates the possibility that DOGE could be slightly overvalued compared to its current market activity.
Investors are faced with less profitable conditions, which can lead to more short -term sales.
If the MVRV report continues to drop, it could point out that the room does not feel the bullish feeling that it once had. Therefore, Dogecoin can find it difficult to rally until its MVRV report shows signs of improvement.
Source: Santiment
The weight of the feeling of the market on Dogecoin
Dogecoin’s weighted feeling plunged at -0,999971, highlighting the extremely negative perspectives surrounding the medal. This radical change in feeling follows the decrease in network activity and price action.
When the feeling is so negative, it becomes more and more difficult for the medal to attract new investors. Consequently, the chances of Doge recovery seem to be thin, unless important catalysts emerge to strengthen the confidence of investors.
Source: Santiment
Can Dogecoin recover from his decline?
Given the combination of the drop in network activity, the decline in the number of transactions, negative feeling and a downward price trajectory, Doge is unlikely to experience rapid recovery.
Without a substantial change in its fundamental principles or a solid market catalyst, Dogecoin is threatened to reduce cooling. Right now, the chances of Dogecoin to find her high previous ones seem to be thin.