Despite its popularity, the network activities in the Dogecoin network have hit a new low, setting an air of uncertainty regarding the price of DOGE.
Dogecoin (DOGE) is facing a major struggle with declining network activity. Recent market data shows that daily active addresses have fallen below 60,000, the lowest level since October 2024.
Why Is Dogecoin Losing Strength?
It is worth noting that large transactions from major investors, otherwise referred to as whales, have also declined. Records show that only 66 transactions exceeding $1 million were recorded daily.
#Dogecoin $DOGE network activity has dropped to its lowest level since October 2024, with just 66 whale transactions and fewer than 60,000 active addresses per day! pic.twitter.com/xOlMNTbyHy
— Ali (@ali_charts) February 23, 2025
Unfortunately, these factors have contributed to DOGE’s price decline. It is now at $0.2329, down 4.77% in the past 24 hours and 11.57% over the past week.
Similarly, many other factors have contributed to the decline of the memecoin. For example, data shows that fewer people are using the network. The drop in daily active addresses revealed this.
Notably, this decline shows weaker engagement and reduced transaction volume. Meanwhile, in the past months, Dogecoin saw an increase in activity when its price surged, but the attention the memecoin was getting has dropped dramatically.
Another important reason for this decline is the drop in whale activity. Large investors played a major role in driving up DOGE’s value in past rallies. However, with just 66 whale transactions recorded recently, their influence on price movements has weakened. Limited whale support often leads to lower volatility and less price growth.
Also, data on holder behavior shows a difference in investment patterns. Currently, medium-term holders have reduced by 11.81%, while short-term traders have surged by 107.45%.Â
This trend means more people are looking for quick profits instead of holding DOGE for long-term gains. Sadly, such an investment attitude can increase price fluctuations and instability.
Can Dogecoin Make a Comeback?
Despite the bearish trend, some analysts remain hopeful. A well-known crypto trader, Trader Tardigrade, compared DOGE’s current situation to its 2017 consolidation phase, which was followed by a 15-fold price surge.
Based on historical patterns, the trader predicts that Dogecoin could break out and exceed $1.30 after March 2025. However, this recovery depends on whether user engagement and investor confidence return in the coming months.
For now, Dogecoin remains in a critical phase. If activity picks up and whales return, a rebound could be possible. Otherwise, the downtrend.
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