The Dogecoin [DOGE] network is currently experiencing a notable slowdown, with key indicators showing significant declines. This drop comes at a time when DOGE has lost 13% of its value in the past week, leading to concerns regarding its future performance.
With network activity hitting its lowest point since October 2024, many are questioning whether this is a temporary setback or the beginning of a prolonged downturn for Dogecoin.
The recent change in market dynamics has left investors uncertain about what lies ahead for this memecoin.
A Closer Look at Dogecoin’s Decline
Dogecoin has recently faced a sharp decline, shedding 13% of its value over the past week amidst a broader market cooldown.
This decline follows a period of relative strength towards the end of 2024 when DOGE saw increased retail interest and accumulation by large investors.
However, recent price movements indicate a loss of momentum, with both trading volume and on-chain activity dropping to levels not seen in months.
Since reaching its peak in October 2024, Dogecoin has struggled to sustain upward movement, facing challenges at key resistance levels.
Transactions by large holders have declined, and overall network engagement has decreased, indicating a waning confidence among investors.
While Dogecoin has historically thrived on hype and speculation, the current pullback raises doubts about its resilience in a changing market environment.
The primary concern now is whether Dogecoin can regain momentum or if further downward movement is in store.
Decline in Network Activity to Lowest Levels Since October 2024
Activity on the Dogecoin network is witnessing a sharp decline, with key metrics reaching multi-month lows.
Transactions by large holders, which previously influenced market sentiment, have dropped significantly to just 66 per day, indicating a sharp decline in high-value trades.
Furthermore, the number of daily active addresses has fallen below 60,000, signaling reduced user participation and on-chain activity.
The data clearly shows a downward trend: since its peak in late 2024, Dogecoin’s network activity has been steadily decreasing alongside its price.
Transaction volume denominated in USD has followed a similar pattern, pointing towards diminishing demand and liquidity.
While Dogecoin has previously relied on strong community engagement and speculative interest, the latest data raises concerns about dwindling investor confidence.
Unless network activity sees a resurgence, Dogecoin may struggle to recover, making it susceptible to further price corrections in the near future.
Pressure Mounts on DOGE: What Comes Next?
Dogecoin’s downward trend continues, trading at $0.233 at the time of writing, reflecting a 3.94% decline in the last 24 hours. The RSI stands at 32.77, approaching oversold levels without showing signs of a reversal.
Weak buying momentum indicates that Dogecoin may remain under pressure unless demand picks up.
The On-Balance Volume (OBV) has plateaued around 45.77B, indicating stagnant volume and limited accumulation. Historically, similar conditions have preceded further declines or prolonged consolidation phases.
If Dogecoin fails to hold the $0.22 support level, a retest of $0.20 could be imminent. Bulls will need to reclaim $0.25 to change sentiment, but with fading volume, a breakout seems unlikely in the short term.