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- DOGE has entered historically oversold territory after falling more than 10% in the past month.
- Weekly active addresses increased by 16%, signaling continued network participation despite price weakness.
- The battle between buyers and sellers could determine whether Dogecoin rebounds toward $0.10 or extends its decline.
Dogecoin (DOGE) has entered one of its most closely watched phases in years as traders debate whether the latest decline represents a rare buying opportunity or the start of a deeper correction. The largest memecoin has fallen more than 10% over the past month, reflecting broader weakness across the memecoin sector, which has shed more than $2 billion in market value during the same period.
As the leading memecoin by market influence, Dogecoin often shapes sentiment across the sector. Its latest price action has therefore drawn significant attention from traders looking for clues about where memecoins could head during the third quarter.
Historic Oversold Conditions Fuel Bullish and Bearish Views
Technical indicators suggest DOGE is trading in historically oversold territory. The token is now roughly 90% below its all-time high and hovering near its lowest price levels in about three years. At the same time, its monthly Relative Strength Index (RSI) has dropped beneath levels recorded during the 2022 crypto bear market.
Historically, extremely low RSI readings have often appeared near major market bottoms, encouraging some investors to view the current weakness as a potential accumulation phase. Others, however, argue that oversold conditions alone do not guarantee a reversal, especially after DOGE slipped below the important $0.08–$0.07 support zone for the first time since late 2023.
That breakdown has likely left many holders with unrealized losses, increasing selling pressure as some investors opted to exit rather than wait for a recovery.
On-Chain Activity Offers a Different Signal
While price action remains weak, blockchain data presents a more optimistic picture. Weekly active Dogecoin addresses reportedly climbed around 16%, increasing from approximately 38,000 to 44,000.
Growing network participation during periods of heavy selling is often viewed as a sign that users remain engaged despite falling prices. Some market observers believe this could indicate early accumulation rather than widespread abandonment of the asset.
If address growth continues while selling pressure eases, DOGE could see stronger buying interest emerge over the coming weeks.
Could Dogecoin Target $0.10 in Q3?
The market remains sharply divided. Optimistic analysts believe the combination of historically oversold technical indicators and rising network activity could create conditions for a recovery. If fresh demand absorbs remaining selling pressure, a short squeeze could accelerate momentum and place the $0.10 level back into focus.
Skeptics, however, caution that breaking below long-standing support could signal further downside before any sustainable rebound develops.
Also Read: Dogecoin Drops Below $0.08 as $7.6M Liquidations Hit Traders — Is DOGE Ready for a Rebound?
Dogecoin now sits at a critical crossroads. Technical weakness continues to weigh on sentiment, but improving on-chain activity suggests interest in the network has not disappeared. Whether buyers regain control or sellers extend the decline will likely determine not only DOGE’s direction but also broader memecoin market sentiment throughout Q3.
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!
