Market Analysis
Dogecoin (DOGE) has entered a critical phase as the popular meme coin faces intense selling pressure, having shed over 40% of its value since March began. While the broader crypto market struggles with macroeconomic headwinds, recent AI predictions suggesting a potential 170% rally in 2025 offer a glimmer of hope for DOGE holders.
Network Activity Shows Promise
Despite the bearish price action, on-chain metrics paint a more optimistic picture. According to Glassnode data, Dogecoin’s network activity has surged by an impressive 47% over the past month, with active addresses climbing from 110,000 to 163,000. This significant increase in network engagement historically correlates with price recoveries, potentially signaling accumulation by long-term holders.
Technical Analysis
DOGE currently trades at $0.17, with crucial support at $0.15. A break below this level could trigger a decline toward $0.10, while successful defense could spark a recovery toward $0.20. The recent surge in network activity, combined with oversold conditions, suggests a potential relief rally if broader market sentiment improves.
Market Implications
The meme coin sector has been particularly hard hit in the recent market downturn, with DOGE trading 70% below its December peak. However, the dramatic increase in network activity could indicate a shift in market dynamics, especially if Bitcoin stabilizes above key support levels.
Traders should watch the $0.15 support level closely in the coming days, as this price point could determine whether DOGE continues its downward trajectory or stages a recovery rally backed by growing network fundamentals.