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Dogecoin (DOGE) finds itself at a pivotal moment as its price fights to hold key support levels. A recent 10% drop sent the leading meme coin tumbling to $0.206, triggering a wave of panic across the market. This sharp decline led to over $32 million in liquidations, with increased selling pressure pushing DOGE to a low of $0.1969. Traders are now on high alert—will buyers step in to defend the price, or will the downtrend persist?
If #Dogecoin $DOGE drops below $0.19, the probability of a deeper correction toward $0.060 significantly increases! pic.twitter.com/6OLjt66X0B
— Ali (@ali_charts) February 25, 2025
Dogecoin Network Activity Declines Amid Weak Market
Dogecoin’s on-chain activity has weakened significantly, signaling reduced market engagement. Daily blockchain transactions have plummeted from 133,000 to just 51,000 over the past three weeks. Meanwhile, Open Interest—a key indicator of speculative activity—has nosedived from $5 billion to $1.8 billion. This downturn suggests that many investors are taking a wait-and-see approach as the market struggles to regain momentum.
Since Donald Trump’s second inauguration, Dogecoin has struggled to build sustained bullish momentum. The meme coin’s price has declined by more than 50% in just four weeks. If DOGE fails to hold the critical $0.19–$0.21 range, the risk of a deeper correction looms large, with bearish targets potentially extending toward $0.06. However, some technical indicators hint at a possible reversal. A falling wedge pattern—typically a bullish signal—suggests that a breakout could be on the horizon if buyers regain control.
Institutional Interest and Musk’s Influence Fuel Optimism
Despite the downturn, large investors continue to exhibit confidence in Dogecoin. Over 6.1 million wallets currently hold DOGE, reinforcing strong on-chain adoption. Additionally, the network’s hash power stands at 2.66 PH/s, further strengthening its security and stability.
Elon Musk remains a key catalyst for Dogecoin’s future. His company, X (formerly Twitter), is set to launch a payments platform later this year, fueling speculation that DOGE could play a role. Musk has also named a government efficiency initiative after Dogecoin, reinforcing his long-standing support.
Also Read: Dogecoin Price Crashes Below $0.20 After 26% Drop as SEC Declares Meme Coins Non-Securities
For now, DOGE’s price remains at a crossroads. A decisive move above $0.21 could ignite a rally toward $0.31. However, if the selling pressure persists and DOGE breaks below key support, a decline to $0.14 or lower remains a strong possibility. The coming days will be crucial in defining Dogecoin’s short-term trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
