Dogecoin (DOGE) Drops 9% Amid 270% Network Activity Surge

Dogecoin (DOGE) has experienced a significant surge in network activity, with active addresses increasing by 270% in the past 24 hours, reaching 264,000. This surge in activity comes despite a 9% drop in the price of Dogecoin, which is currently testing support at $0.16. The price decline is part of a broader cryptocurrency market correction, but the increase in active addresses suggests growing interest in the meme cryptocurrency.

Analysts have identified key support levels for Dogecoin, with $0.16 being a crucial threshold. Maintaining a position above this level is seen as vital for DOGE to sustain momentum and potentially fuel a rebound. Whale activity on the Dogecoin network has also increased, with the largest whales accumulating 1.7 billion DOGE over the past 72 hours. This accumulation suggests that major players might be positioning themselves for an upcoming move, despite the recent price drop.

Crypto analyst Ali Martinez highlighted Dogecoin’s approach to the lower boundary of its current price channel. He previously stated that if bulls manage to hold above the DOGE support levels of $0.16, it could trigger a rally toward much higher prices. Pseudonymous analyst “TheGift94” outlined potential demand zones where DOGE might stabilize during this selling pressure. The first support zone at $0.20 was breached as Dogecoin’s price fell by 13% yesterday, closing at $0.1678. Two additional zones at $0.16 and $0.13 are now being monitored as potential turning points for DOGE.

Another analyst, MMBTtrader, shared a more bearish outlook. This analyst suggested Dogecoin could breach all three aforementioned supports and drop to $0.08131, a price level last seen in August. However, the analyst predicted that the meme coin would eventually pump from the global support at $0.08131 to reclaim $0.40. Despite the current downturn, some market watchers maintain a bullish long-term price outlook for Dogecoin, suggesting that DOGE still has potential to reach much higher price points before the end of this bull cycle.

Dogecoin has experienced four consecutive negative daily candles, correcting 30% over the previous