Dogecoin’s meteoric rise may be facing a severe test as new data reveals an unprecedented 95% collapse in network activity. This dramatic decline comes amid increasing speculation about the meme coin’s long-term viability, with potential links to recent market signals indicating a major bottom formation.
Network Activity Plummets to Critical Levels
According to crypto analyst Ali Martinez, Dogecoin’s network has experienced a staggering decline from 2.66 million active addresses in November to just 130,282 today. This 95% drop in activity raises serious concerns about the network’s health and user engagement.
Key Statistics:
- Active addresses dropped from 2.4M to 130,282
- Price declined from $0.4868 to $0.2077
- Long-term holders decreased by 2.67%
- Mid-term holders dropped by 11.81%
- Short-term traders increased by 107.45%
Shifting Investor Behavior
The data reveals a concerning trend in investor behavior, with long-term holders reducing their positions while speculative trading increases. This shift suggests a fundamental change in how market participants view DOGE, potentially moving away from its status as a long-term investment vehicle.
Price Targets and Future Outlook
Despite the current downturn, some analysts remain optimistic. CryptoELITES has outlined three potential price targets:
- Short-term target: $0.75
- Mid-term target: $1.5
- Long-term target: $5.0
Market Implications
The dramatic decline in network activity could signal a broader shift in the meme coin market. Investors should monitor these metrics closely as they often precede significant price movements. The increase in short-term trading activity suggests increased volatility may lie ahead.
Source: NewsBTC