Analysts discuss whether Dogecoin can make a recovery after its recent decline. The article examines current signals and potential risks for this cryptocurrency.
Encouraging Signals for Dogecoin
Despite the recent decline in Dogecoin's value, some analysts believe the bearish trend might soon end. Social media user Ali Martinez noted that the TD Sequential indicator flashes a buy signal on the daily chart. According to forecasts by Rose Premium Signals, if Dogecoin surpasses the $0.29124 mark, it could lead to a price increase to $0.50-$0.60.
The Downside Scenario: Reasons for Caution
Ali Martinez also presented data indicating a decline in Dogecoin's network activity. The number of new addresses dropped from 1.3 million in November 2024 to 30,815 as of February 2025. DOGE’s total futures trading volume fell from $58.2 billion in November to $992 million by late February. These indicators suggest reduced user engagement.
What Does the Future Hold for Dogecoin?
According to Ali Martinez, there is a chance Dogecoin's price could crash to $0.06 if it falls below $0.19. Despite a significant drop in the last few days, the price has not yet breached the key level of $0.19, leaving the future of the cryptocurrency uncertain.
While Dogecoin shows potential growth signals, declining network and trading activity raise concerns among investors. Dogecoin's future remains uncertain, dependent on user interest and market dynamics.
