Despite growing trader optimism for Dogecoin, market data indicates potential risks. Network activity and liquidations suggest possible volatility.
Price Action and Support Levels
Dogecoin is currently trading at $0.1809, marking a 7.96% drop in the last 24 hours. The price is testing a critical support zone at $0.208, identified as the next major resistance level. If the support holds, DOGE could see a breakout, but failure could lead to deeper declines.
Network Activity and Market Engagement
As of March 28, 2025, there were only 47,577 daily active addresses and 14,020 transactions. This low level of engagement could limit Dogecoin’s potential for growth. Without user activity surging or new catalysts emerging, DOGE may struggle to exceed its current range.
Liquidations Highlight Market Pressure
Liquidation data shows that long positions dominate, with $5.53 million compared to $421,680 for short positions. This indicates increased bearish pressure as traders are forced to exit their positions. Despite the Long-to-Short Ratio favoring bullish sentiment, the dominance of long liquidations suggests a near-term surge is unlikely.
While Dogecoin's market sentiment remains bullish, significant liquidations, low network engagement, and technical challenges suggest it faces hurdles. Without improved market conditions or new catalysts, Dogecoin is likely to consolidate or face downward pressure in the short term.
