Dogecoin (DOGE) Is Struggling to Hold Its Ground Amid a Broader Crypto Market Sell-off

output:input: Bitcoin (BTC) is struggling to hold its ground amid a broader cryptocurrency market sell-off, triggered by the cryptocurrency's drop below $9,000.

Dogecoin (CRYPTO: DOGE) was struggling to stay afloat on Thursday as the broader cryptocurrency market slid further amid Bitcoin’s fall below the $90,000 mark.

The sudden downturn triggered panic among investors, leading to significant losses for several altcoins, including DOGE.

What Happened: As of press time, Dogecoin was trading down by 4.42% in the past 24 hours at $0.2044.

DOGE had a 24-hour trading volume of $4.52 billion, and its market cap was $30.20 billion.

The sell-off followed new tariffs and the Bybit cyber attack, both of which contributed to economic concerns and reduced risk appetite among investors.

Bitcoin’s sharp decline had a knock-on effect, dragging the entire market down and impacting DOGE’s price performance accordingly.

On-chain data from crypto researcher Ali Martinez showed a 95% decline in Dogecoin network activity, raising concerns about its future trajectory.

The number of active Dogecoin addresses had dropped to 130,282 on Thursday, down from 2.66 million in November.

This decrease in user engagement signaled weakening demand for DOGE transactions and could potentially increase selling pressure.

Martinez added that long-term DOGE holders were "in denial" and had yet to recognize the downtrend.

"Still no signs of capitulation among long-term holders, who continue to hold onto their DOGE coins at a loss," he further noted.

From a technical perspective, the analyst noted that, DOGE was approaching a crucial support level at $0.19. A breakdown below this mark could lead to a substantial decline toward $0.06, indicating a much deeper correction.

For DOGE to regain bullish momentum, it required strong buying support to break through higher resistance levels. However, if the broader market remained in a bearish pattern, then Dogecoin’s downtrend may continue.

Investors should keep an eye on Bitcoin’s price action, network activity, and key support levels to anticipate the next big move in Dogecoin’s price performance.

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