Dogecoin has faced selling pressure in recent weeks. However, it managed a 5% gain over the past 24 hours, trading at $0.2124. Despite intraday pullbacks, the price maintained an upward trend, showing renewed buyer interest and improving market sentiment. Dogecoin’s market capitalization rose to $31.5 billion, increasing investor confidence.
However, the 24-hour trading volume declined by 27.5%. The drop shows that traders are being cautious and waiting for proof of steady buying. Staying above $0.2100 is key for short-term bullish momentum.
Dogecoin hit a high of $0.46766 in Dec. 2024 but failed to break the key $0.48 resistance level. This rejection triggered a downward spiral, resulting in lower lows as selling pressure intensified. The inability to surpass this resistance weakened the overall market structure, pushing DOGE into its current consolidation phase.
Dogecoin network activity plummets as sentiment weakens
On-chain data reveals a significant decline in Dogecoin’s network activity. Market analyst Ali highlighted that active addresses dropped by 95%, falling from 2.66 million in Nove. 2024 to just 130,282 as of Feb. 23, 2025.
This sharp drop points to waning user engagement and declining on-chain demand. Dogecoin’s price reflected this trend, sliding from $0.3868 in late November to $0.2432 by late February. The correlation between declining active addresses and falling prices indicates weakening market sentiment. The dramatic reduction in network activity raises concerns about sustained interest in DOGE, especially amid broader market volatility.
Technical indicators and key levels signal possible breakout
According to Trader Tardigrade, Dogecoin is forming a pattern similar to its 2017-2018 bull run. The long-term symmetrical triangle pattern suggests the potential for a breakout as DOGE approaches the apex. The current consolidation zone between $0.20 and $0.25 marks a critical area. If bullish momentum strengthens, Dogecoin could target above $0.60, mirroring past explosive rallies.
Technical indicators provide mixed signals. The MACD line sits at -0.00199, below the signal line at -0.01963, showing bearish momentum. However, the narrowing gap hints at a potential bullish crossover. Shrinking histogram bars further indicate weakening selling pressure. Meanwhile, the RSI stands at 28.55, placing DOGE in the oversold zone. This level suggests that the token may be primed for a relief rally. A move above the 30 RSI level could attract buyers and reinforce a bullish outlook.
Key support lies at $0.2080, with further support at $0.2000 if the price dips. A break below these levels could push DOGE toward $0.1800. On the upside, immediate resistance sits at $0.2200. Surpassing this could spark momentum toward $0.2500, with the potential to reach $0.3000 if the trend strengthens.
