Key Notes
- Dogecoin network activity has plummeted by 95%, with active addresses falling from 2.66 million to 130,282.
- Bearish crossovers in EMAs hint at further downside, but oversold RSI supports a potential rebound.
- Open interest in Dogecoin has recovered to $1.89 billion, with Binance and OKX traders heavily bullish.
- A bullish breakout could push DOGE toward $0.23, while a breakdown risks a fall to $0.1716.
As the crypto market witnesses a new crash, the fear and greed index is down to 26. The meme coins market cap has dropped to $58.15 billion with Dogecoin DOGE $0.21 24h volatility: 4.6% Market cap: $31.42 B Vol. 24h: $2.04 B falling nearly 16% over the past week.
Crashing to its $0.20 psychological support, the short-term recovery hints at a potential consolidation. However, with the growing fear in the market, is Dogecoin bound to crash? Let’s find out.
Network Activity Decline: A Red Flag for DOGE?
Amid the recent increase in volatility, the Dogecoin network has witnessed a sharp decline. As per a recent tweet by Ali Martinez, a crypto analyst, Dogecoin network activity has dropped by nearly 95%.
#Dogecoin $DOGE network activity has declined by 95%, dropping from 2.66 million active addresses in November to just 130,282 today! pic.twitter.com/SlH3qTuMP6
— Ali (@ali_charts) February 25, 2025
In November 2024, the number of active addresses stood at 2.66 million, but it has significantly declined to 130,282 active addresses.
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
Amid the declining network activity, the analyst highlights a potential crash coming for Bitcoin. Highlighting a rising channel pattern in the weekly chart, the analyst warns that a closure under $0.19 could result in a steeper correction to $0.060.
Dogecoin Price Analysis: Bearish Pressure Intensifies
In the daily chart, the Doge price action showcases a bullish failure to surpass a local price of $0.2428, leading to a closing price of $0.2104. With the lower price rejection and a Doji candle, Dogecoin hints at a potential morning star pattern.
Dogecoin Price Chart
During the recent downfall, the 50-day and 100-day EMA lines have given a negative crossover. Furthermore, the 20-day and 200-day EMA lines have also retained a negative alignment.
These crossovers increase the possibility of a death cross between the 50-day and 200-day EMAs. Additionally, the recent crash has dropped the daily RSI line into the oversold category.
While the EMA indicators hint at a potential downfall, the oversold RSI nature supports a possible retest toward the resistance trendline. Hence, the technical indicators remain divided on the DOGE price trend.
Dogecoin’s Open Interest Rebounds
As Dogecoin hits a crucial crossroad, the derivatives data witnesses massive fluctuation. The open interest weighted over funding rate has turned positive, recovering to 0.0029% after momentarily turning negative.
Furthermore, the open interest has gradually recovered by nearly 3%, reaching $1.89 billion. Currently, the overall long-to-short ratio for Dogecoin remains at 1, reflecting an equal number of bulls and bears at play.
However, traders on top exchanges like Binance and OKX are extremely bullish on Dogecoin. The long-to-short ratio based on accounts and positions reflects nearly 2x to 3x bullish positions, undermining the bearish sentiments.
Nevertheless, the 24-hour liquidation has reached $15.15 million. The long liquidations account for $9.13 million, while short liquidations have risen to $6.02 million.
Key Price Targets
Supporting the bullish chances, Dogecoin holds dominance near the 50% Fibonacci level at $0.20 psychological mark. The bullish recovery in the meme coin is likely to test the overhead trendline near the $0.23 mark.
However, a bearish breakdown from the 50% Fibonacci level could push Dogecoin toward the 61.80% retracement level at $0.1716.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
