The latest downward wave pushed Dogecoin to stockings below $ 0.2, a prominent event analyst Ali Martinez, projected a discussion on the next step for Doge.
Dogecoin faces a significant slowdown along the larger market, negotiating just above $ 0.2 after a sharp drop to $ 0.196. DOGE also recorded a 20% drop in last week.
The decrease in progress reflects a weakened momentum as traders move away from the assets. Meanwhile, network activity fell At the levels not seen since October 2024, adding to the lowering prospects.
Damn unleashing and a purchase opportunity
While Dogecoin has dropped, it broke down a symmetrical triangle model, signaling a potential for decline. The model initially formed when the price action has converged in the two trend lines.
Despite several attempts to break higher, the price finally fell below the lower trend line, confirming the downstream break. The market analyst, Ali Martinez, highlighted this ventilation using a one hour calendar graphic for Doge / USDT perpetual contracts on Binance.
Based on Fibonacci’s retracement levels, the analyst suggested that DOGE could test the extension of FIBONACCI 1,272 to $ 0.20578. According to Martinez, other losses would make the price pass from 1.414 FIBONACCI to $ 0.197 if the decline continues.
In particular, this prediction was materialized, as Doge finally dropped to $ 0.196 before recovering slightly at $ 0.2014.
#Dogecoin $ DOGE broke out of a symmetrical triangle, targeting $ 0.197! pic.twitter.com/7pq2pcxcts
– Ali (@ali_charts) February 24, 2025
During the activity of the network on Dogecoin
Supporting the lowering scenario, the activity of the Dogecoin network has strongly refusedAccording to a separate position of Martinez.
At the time of Martinez’s report, the number of active addresses had fallen below 60,000 per day. Whale transactions also slowed down, with only 66 recorded at the time.
These figures indicated a reduction in the commitment between investors, which could add to the sales pressure. Historically, a lower network activity is correlated with a weakening of demand, influencing price movements.
Transfer to the behavior of Dogecoin investors
In addition, property distribution data D’Intotheblock shows a change in behavior of investors. Long-term holders and mid-term cruisers have decreased, while short-term traders have increased considerably. This discrepancy suggests increased speculative activity, which can contribute to new volatility.
In particular, long -term and mid -term holders decreased by -2.67% and 11.81%, respectively. This reduction indicates that even Swing traders leave positions.
Meanwhile, short -term traders who have less than a month increased by 107.45%. The sharp increase in speculative merchants suggests an increased probability of fast price and potential sales swings while these investors are looking for short -term gains.
What is the next step for Dogecoin?
It is important to note that despite these decreases, other analysts consider this as an opportunity to purchase.
Cryptoelite analyst on x suggest This Dogecoin could see an increase of five times then, to potentially $ 1.2. In particular, the analyst’s prediction is based on a cutting and sleeve model.
DOGE 5 X loading. $ DOGE #Doge pic.twitter.com/emioald9mz
– @cryptoelltes (@cryptooelites) February 25, 2025
Difles: This content is informative and should not be considered financial advice. The opinions expressed in this article may include the author’s personal opinions and do not reflect the basic opinion of cryptography. Readers are encouraged to do in -depth research before making investment decisions. The Crypto Basic is not responsible for financial losses.