Dogecoin [DOGE] Network Activity Drops 95%, Active Addresses Plummet to 130k

Dogecoin [DOGE] has seen a sharp 95% drop in its network activity, with active addresses plummeting from 2.66 million in November 2024 to just 130282

Dogecoin [DOGE] has seen a sharp 95% drop in its network activity, with active addresses plummeting from 2.66 million in November 2024 to just 130,282 at press time. This is a significant change from the coin’s peak activity, which occurred after the market-wide rally that began in late 2024.

After hitting a peak of $0.41796, Dogecoin’s price had been steadily declining in a symmetrical triangle. The price was sitting near $0.2101 at press time, having dropped from $0.17594. However, there are key resistance levels that could influence future movements, namely $0.27155 and $0.31413.

If DOGE fails to hold above $0.2100, it could face further losses. Additionally, the RSI was trending lower, indicating continued selling pressure.

Therefore, Dogecoin may struggle to break free from its current downtrend unless it sees a major shift in market sentiment.

Declining transaction count suggests lower user activityTransaction count data painted a similar picture, with DOGE showing consistent declines in daily transactions since its peak activity in late 2024.

Although sporadic spikes have occurred, transaction volume has significantly dropped, signaling lower network activity. This trend suggested that DOGE’s user base was shrinking, which is a crucial indicator of its long-term health.

The lack of new transactions further highlighted the disinterest in the coin, especially when compared to its prior enthusiasm.

Moderate decline in DOGE’s MVRV RatioDogecoin’s MVRV Ratio decreased to 40.63%, indicating a moderate decline from its previous highs.

Although not yet in negative territory, this decrease points to the possibility that DOGE might be slightly overvalued relative to its current market activity.

Investors are facing less profitable conditions, which may lead to more sell-offs in the short term.

If the MVRV ratio continues to drop, it could signal that the coin is not experiencing the bullish sentiment it once had. Therefore, Dogecoin may struggle to rally until its MVRV ratio shows signs of improvement.

The weight of market sentiment on DogecoinDogecoin’s Weighted Sentiment has plunged to -0.999971, highlighting the overwhelmingly negative outlook surrounding the coin. This drastic shift in sentiment follows the decrease in network activity and price action.

When sentiment is so negative, it becomes increasingly difficult for the coin to attract new investors. Therefore, DOGE’s chances of recovery seem slim unless significant catalysts emerge to boost investor confidence.