Dogecoin's Network Activity Plummets 95%: Can It Recover?

Dogecoin, once a darling of the cryptocurrency world, has seen a significant decline in its network activity, with a 95% drop since its peak in late 2024. This sharp decrease in activity has raised concerns about the coin's future prospects and its ability to recover from this downturn.

Active addresses on the Dogecoin network have plummeted from a high of 2.66 million in November 2024 to just 130,282 at the time of this report. Despite a modest 2.42% increase in price to $0.2101 in the last 24 hours, the overall trend suggests that Dogecoin is struggling to maintain momentum amidst broader market challenges.

An analysis of Dogecoin's price action reveals a steady downtrend in a symmetrical triangle, with the price sitting near $0.2101 at press time. Key resistance levels at $0.27155 and $0.31413 could influence future movements, but if DOGE fails to hold above $0.2100, it could face further losses. The Relative Strength Index (RSI) is trending lower, indicating continued selling pressure, which suggests that Dogecoin may struggle to break free from its current downtrend without a significant shift in market sentiment.

Transaction count data paints a similar picture, with Dogecoin showing consistent declines in daily transactions since its peak activity in late 2024. Sporadic spikes have occurred, but overall transaction volume has significantly dropped, signaling lower network activity. This trend suggests that Dogecoin's user base is shrinking, which is a crucial indicator of its long-term health. The lack of new transactions further highlights the disinterest in the coin, especially when compared to its prior enthusiasm.

Dogecoin's MVRV Ratio has decreased to 40.63%, indicating a moderate decline from its previous highs. Although not yet in negative territory, this decrease points to the possibility that DOGE might be slightly overvalued relative to its current market activity. Investors are facing less profitable conditions, which may lead to more sell-offs in the short term. If the MVRV ratio continues to drop, it could signal that the coin is not experiencing the bullish sentiment it once had, making it difficult for Dogecoin to