Dogecoin Network Activity Drops 97% — Has Elon Musk's Memecoin Era Ended Yet?

According to Coinglass data, Dogecoin's open interest has decreased by over 3 billion dollars since January, currently at 1.91 billion dollars.

This index tracks the total value of outstanding derivative contracts, reflecting a decline in the level of trader interaction with the meme coin.

Futures trading volume also decreased by nearly 30%, currently at $3.71 billion, further consolidating the pessimistic sentiment. The broader market decline has pushed Dogecoin back to the $0.20 level. Analysts like Ali Martinez warn that losing this support could signal the end of the price increase cycle. The decrease in open interest and trading volume indicates traders are exiting positions amid the instability.

Network activity data shows that the creation of new addresses decreased from 1.29 million in November to 30,815, while active addresses decreased from 2.66 million to 130,282. Large DOGE holders, also known as "whales," are still inactive, potentially adding selling pressure due to their historical influence on price volatility. Tardigrade trader believes that Dogecoin's price model reflects the 2017 price surge and predicts the price will rise over $1.7 after the merge.

DOGECAPITAL also forecasts a potential target of $1.7, citing historical cycles such as 2017 and 2021. Although bearish signals dominate short-term forecasts, this outlook indicates the possibility of price increase if the market stabilizes.

Currently, Dogecoin (DOGE) is trading at $0.20723, marking a 1.98% increase of (+0.00402 in the past 24 hours. Despite this short-term positive trend, DOGE has seen a significant decrease of 18.64% in the past week and has dropped 37.93% in the past month. However, the long-term prospects show an increase of 103.74% in the past six months and a 112.34% increase compared to the same period last year, indicating the potential recovery of this currency over the past year. Recently, Dogecoin has dropped 15% over the course of two days, falling below the important 200-day simple moving average (SMA) line at $0.24 for the first time since October 2024. This indicates that selling pressure has intensified and the price is currently testing new support levels. Technical indicators and market sentiment Dogecoin is trending downwards and the current price is fluctuating around the support level of about 0.19 – 0.20 dollars.

A potential recovery from this area could trigger a short-term recovery, targeting the range of $0.24 - $0.26. The RSI is approaching oversold conditions, signaling that the market may be due for a correction if buying pressure returns.