The post Dogecoin Faces Challenges That May Limit Breakout Potential Despite Recent Whale Activity appeared on BitcoinEthereumNews.com.

Dogecoin faces multiple challenges that could prevent a breakout, despite recent whale activity. Despite a key bounce, DOGE appears trapped in bearish trends that may hinder any significant price recovery. “At press time, DOGE was trading at $0.2551,” as noted in our recent COINOTAG analysis. Dogecoin shows signs of potential recovery, but bearish trends and declining network activity pose significant challenges ahead. What’s happening on DOGE’s chart? Looking at DOGE’s price action, the cryptocurrency bounced from a crucial support zone around $0.25 – a sign of potential accumulation after recent pullbacks. This level has been important for Dogecoin in the past, meaning it may play a pivotal role in any future rally. However, DOGE seemed to be under pressure due to a descending channel formation, suggesting the market may still favor the bears. At press time, the Relative Strength Index’s (RSI) 37.93 reading indicated that Dogecoin was oversold and may be due for a rebound. Source: TradingView Declining active addresses and transaction counts On the network side, DOGE faced a concerning decline in daily active addresses and transaction counts. On 20 February, daily active addresses were 48,482 and the transaction count was 32,054. This drop hinted at reduced network activity, which can be problematic for a cryptocurrency looking to sustain growth. Lower network activity often leads to decreased liquidity, causing higher volatility. Source: Santiment MVRV long/short difference – Where is the market sentiment heading? Dogecoin’s MVRV (Market Value to Realized Value) long/short difference recently dropped to 11.52% too – a sign that many holders have been at a loss. Such a negative sentiment could put downward pressure on DOGE, especially if traders decide to sell to avoid further losses. The bearish MVRV further hinted at a lack of conviction among market participants, which could contribute to sustained bouts of consolidation.…

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Filed under: News - @ February 21, 2025 7:20 am