Dogecoin Network Activity Declines 95% Amid Market Turmoil
The crypto market is experiencing a downturn, with the fear and greed index at 26. The meme coin market cap has decreased to $58.15 billion, and Dogecoin has fallen nearly 16% in the past week, currently testing the $0.20 support level.
Network Activity Decline for DOGE
- Dogecoin's network activity has dropped by 95%, from 2.66 million active addresses in November 2024 to 130,282.
- A further decline below $0.19 could increase the likelihood of a correction toward $0.060.
Price Analysis: Bearish Pressure on Dogecoin
- Dogecoin failed to surpass the local price of $0.2428, closing at $0.2104.
- Technical indicators show negative crossovers among the 50-day and 100-day EMA lines.
- The daily RSI line is in the oversold category, suggesting potential retest towards resistance.
Open Interest Rebounds
- Open interest has increased by nearly 3%, reaching $1.89 billion.
- The long-to-short ratio for Dogecoin is currently at 1, indicating equal bullish and bearish sentiment.
- On major exchanges like Binance and OKX, bullish positions dominate with a ratio of 2x to 3x.
- 24-hour liquidations total $15.15 million, with long liquidations at $9.13 million and shorts at $6.02 million.
Key Price Targets
- Support near the 50% Fibonacci level at $0.20 may lead to a bullish recovery towards $0.23.
- A breakdown below this level could push Dogecoin toward the 61.80% retracement level at $0.1716.