Dogecoin's network metrics have hit their lowest levels since last October amid a significant weekly price drop for the asset. However, some analysts remain optimistic, projecting potential growth to new highs if the DOGE price stays above $0.19.
DOGE Network Activity Dwindles
The biggest and oldest meme coin has been in severe decline lately. Its price has plummeted by 12% weekly, and its market capitalization has tumbled below $35 billion. According to reports, DOGE's network activity has fallen to its lowest level since October 2024, with only 66 whale transactions and under 60,000 active addresses daily. This development may be a worrisome sign for investors, possibly leading to reduced interest in the meme coin. Dwindling network activity may reflect broader market sentiment, with many digital assets facing losses.
Prospects for Price Reversal
Despite the current setbacks, some analysts believe DOGE remains on a bullish path. Ali Martinez suggests that as long as the price stays above the $0.16-$0.19 support zone, there is potential for growth. He predicted that if history repeats, DOGE could rally to the resistance trendline at $4. Another analyst, using the handle Cas Abbé, notes that the current pattern resembles the early 2021 pump to $0.70.
Role of Elon Musk and D.O.G.E. Department
Many expect that the next DOGE run will be fueled by Elon Musk and his new initiative, known by the abbreviation D.O.G.E. The department was established to reduce bureaucracy and enhance government efficiency, but Dogecoin supporters quickly noted its name resembles their favorite cryptocurrency. Last month, the department's website featured Dogecoin's logo, causing a price spike for the cryptocurrency.
The situation around Dogecoin continues to captivate both critics and fans. While current network metrics may dampen optimism, some analysts' forecasts and recent initiatives could renew interest in DOGE, improving its market position.
