- DOGE’s whale transactions dropped to 66, impacting liquidity and reducing upward price momentum.
- Retail participation declined sharply, with active addresses falling from 1.66M to 61,500, limiting trading interest.
- DOGE is testing the $0.228 support; a break below may push it to $0.20, while resistance at $0.257 and $0.285 must be reclaimed.
Dogecoin’s network activity has reached its lowest level since October 2024, raising concerns about potential price movement. According to analyst Ali, the network recorded only 66 whale transactions and fewer than 60,000 daily active addresses.
This decline in activity coincides with a downward price trend, suggesting reduced engagement from both retail and institutional investors. At press time, DOGE was trading at $0.2304, down by 6.27% in the past 24 hours.
Declining Whale Activity and Market Impact
Whale transactions have previously influenced DOGE’s price pattern, often peaking during major rallies. In December 2024, whale transactions surged as the price hit $0.476. Another spike followed in January 2025 when DOGE reached $0.445 before entering a downward phase.
However, February has had a sharp decline in whale activity, which aligns with lower price levels. Reduced whale engagement suggests weakened buying pressure from large investors, impacting overall liquidity.
A further drop in whale transactions could limit upward momentum, making a price recovery more challenging. On the other hand, if whales return to the market, DOGE could see another rally, as seen in past price surges.
Retail Participation and Transaction Volume Decline
Dogecoin’s retail participation has also dropped, with daily active addresses falling from 1.66 million to 61,500. This decline suggests reduced market engagement, resembling the drop in transaction volume.
At its peak, transaction volume exceeded $5.75 billion but now is at $123.68 million. Lower volume indicates less trading interest, contributing to price stagnation. Despite the current downtrend, a sudden increase in retail activity could shift momentum.
A rise in transaction volume often aligns with stronger price movements, potentially pushing DOGE above key resistance levels. However, without renewed interest from retail traders, sustained upward movement may remain limited.
Key Price Levels and Market Outlook
DOGE is testing the 0.786 Fibonacci retracement level at $0.22816, which is the support. A break below this level could push the price toward $0.20, with further downside potential to $0.155.
On the upside, the first resistance is at $0.257, followed by $0.285 and $0.325. A successful move above $0.415 would indicate a bullish trend reversal. Market sentiment is cautious, with declining volume and selling pressure dominating.
While accumulation indicators show overall demand is high, the flat trend suggests a lack of aggressive buying. In the near term, DOGE might trade between $0.22 and $0.25 unless a major volume increase affects the momentum.
