Image may be NSFW.
Clik here to view.
- Dogecoin dropped 10%, testing key support amid $32M in liquidations.
- Network activity declined, with daily transactions falling from 133K to 51K.
- A breakout above $0.21 may lead to $0.31, while failure risks $0.14.
Dogecoin—DOGE, is at a turning point as price struggles to hold key support. A 10% drop sent the leading meme coin to $0.206. Panic swept through the market, triggering over $32 million in liquidations. Selling pressure pushed Dogecoin to a low of $0.1969. Traders now watch closely. Will buyers step in, or will the downtrend continue?
Dogecoin Network Activity Declines as Market Weakens
Fewer transactions and lower Open Interest signal reduced engagement with Dogecoin. Daily blockchain transactions dropped from 133,000 to 51,000 in just three weeks. Open Interest also fell, sliding from $5 billion to $1.8 billion. Many investors have paused trading, waiting for stronger signals. Since President Donald Trump’s second inauguration, Dogecoin has struggled to gain momentum.
The price of DOGE has dropped more than 50% in four weeks. A failure to hold the $0.19–$0.21 range could lead to a deeper fall, possibly toward $0.06. However, technical patterns suggest potential for a reversal. A falling wedge formation often signals an upcoming breakout. If bullish momentum returns, Dogecoin could surge toward previous highs.
Institutional Support and Musk’s Influence Keep Hopes Alive
Large investors continue to show confidence. Over 6.1 million wallets hold Dogecoin on-chain, securing the network with a hash power of 2.66 PH/s. This growing adoption supports long-term stability. Elon Musk remains a key figure in Dogecoin’s journey.
His company, X, plans to launch a payments platform later this year. Many believe Dogecoin could play a role. Musk also named a government efficiency program after the meme coin, reinforcing his support.
For now, DOGE is at a critical juncture. A bounce above $0.21 could trigger a rally to $0.31. A break below may send the price toward $0.14 or lower. The next move will define Dogecoin’s short-term future.
