Dogecoin (DOGE) Struggles to Maintain Bullish Rally Amid Falling Active Addresses, Lower Whale Transactions, and Reduced User Engagement

Dogecoin (DOGE) has extended its decline, currently trading around $0.2329, reflecting a 4.77% drop in the past 24 hours.

Dogecoin (DOGE) struggles to maintain a bullish rally despite a recent breakout from a descending channel. The meme coin has faced several obstacles, including falling active addresses, lower whale transactions, and reduced user engagement.

Dogecoin's price has dropped sharply from its 2024 peak, showing a persistent decline with temporary spikes followed by further drops. This sustained downward trajectory has raised concerns among investors.

After peaking in late 2024, Dogecoin's price has shown a consistent decreasing trend. While there were moments of temporary spikes, these were quickly followed by further drops. This persistent decline has brought attention to Dogecoin's market stability and future growth potential.

Impact of Falling Active Addresses

One important indicator highlighting Dogecoin's declining momentum is the significant drop in daily active addresses. According to market data, daily active addresses have fallen below 60,000 on average per day, marking the lowest level since October 2024.

This decrease suggests reduced user engagement and waning interest in the cryptocurrency. Additionally, transaction volume in USD has also declined, mirroring the drop in active addresses and DOGE's price.

While transaction volume previously spiked during price peaks, it has gradually diminished over time. This decline in transaction activity could further contribute to the slowing price movements observed.

Reduced Whale Transactions

Another critical factor contributing to Dogecoin's sluggish performance is the decline in whale transactions exceeding $1 million. The current whale transaction count has dropped to just 66 per day, significantly lower than the frequency observed during previous price surges.

This reduction suggests that large holders are now less active in the market, potentially impacting volatility and price support. Historically, whale transactions have played a crucial role in influencing crypto price movements.

Shifting Holder Dynamics

An analysis of Dogecoin balances by time held provides further insights into shifting market dynamics. There has been a recent 2.67% decrease, a significant drop of 11.81%, and a notable increase of 107.45% in different holding categories.

This trend reflects a decrease in medium-term holders and a rise in short-term traders, aligning with the overall decline in whale transactions and active addresses.

Despite the obstacles, pseudonymous analyst Trader Tardigrade remains optimistic about Dogecoin's future. They have identified a "Boring Phase" in which DOGE's price has been consolidating.

Based on historical patterns, Trader Tardigrade anticipates a substantial breakout for DOGE after March 2025, potentially leading to prices exceeding $1.30. However, this optimistic outlook hinges on renewed interest and increased activity within the ecosystem.

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