Market Alert: Dogecoin’s Critical Support Test
In a shocking market development, Dogecoin’s open interest has plummeted by over $3 billion since January 2025, triggering serious concerns about the popular meme coin’s immediate future. This dramatic decline, coupled with deteriorating price action near critical support levels, has left investors questioning whether DOGE’s bull run is coming to an end.
Key Market Metrics Paint Bearish Picture
According to latest data from Coinglass:
- Open interest crashed to $1.91 billion
- Derivatives volume down 30% to $3.71 billion
- Active addresses dropped from 2.66M to just 130,282
- New address creation plummeted 97% since November
Network Activity Shows Alarming Decline
Crypto analyst Ali Martinez highlights concerning on-chain metrics showing massive contraction in network activity. The dramatic drop in new address creation from 1.29 million to just 30,815 signals potentially weakening adoption. Meanwhile, whale addresses remain notably inactive, further dampening price support.
Technical Analysis: Support at Risk
The $0.20 psychological support level now faces its biggest test yet. A breakdown below this critical threshold could trigger cascading liquidations and accelerate the downward pressure. However, analysts including Trader Tardigrade maintain optimistic long-term projections, citing historical patterns that suggest potential rallies to $1.70 or higher.
Expert Price Predictions
Despite the bearish metrics, several prominent analysts remain bullish on DOGE’s long-term prospects:
- Trader Tardigrade: Projects potential surge to $1.70
- DOGECAPITAL: Expects major rally after consolidation
- Some analysts maintain $10 long-term targets based on historical cycles
Market Implications
The current market structure suggests DOGE could face continued pressure in the short term. However, historical patterns from 2017 and 2021 bull cycles indicate this might be a temporary correction before the next major rally. Traders should watch the $0.20 support level closely for confirmation of trend direction.
Current Price Action: DOGE trades at $0.20, down 2% in 24 hours, with increasing risk of further downside if key support breaks.